Early Morning Reid

Markets retreated as strong US economic data boosted Fed rate hike expectations to 81% while Broadcom's weak AI forecast weighed on tech. Geopolitical tensions in the Middle East persist despite reports of a conditional Israel-Lebanon ceasefire.

Key Takeaways

• 1.Middle East tensions remain high despite conditional ceasefire news, with investors increasingly skeptical of a quick return to normal shipping traffic in the Strait of Hormuz.
• 2.Strong US economic data, including ISM services and ADP payrolls, has driven market expectations of a Fed rate hike by December to 81%.
• 3.Equities are facing pressure from the technology sector following a disappointing AI chip revenue forecast from Broadcom, which fell over 13%.

Table of Contents

• Key Market Data
• Other Market Data
• Key Economic Data
• Topical Deutsche Bank publications
• Appendix 1
• Analyst Certification
• Important Disclosures
• Additional Information
• International Production Locations