Early Morning Reid

Global markets are reacting to rising oil prices driven by US-Iran tensions and anticipation of US CPI and earnings data. Meanwhile, Japan has emerged as a significantly more affordable market compared to 2012 levels.

Key Takeaways

• 1.Escalating tensions between the US and Iran over the Strait of Hormuz drove oil prices higher, increasing stagflation fears and pushing central bank rate hike expectations upward.
• 2.Japan has experienced an extraordinary shift in relative affordability over the past 14 years, moving from one of the most expensive countries to one of the cheapest globally based on PPP-implied price levels.
• 3.China's trade data for June surprised to the upside, with significant growth in both exports (27.0%) and imports (36.0%) despite geopolitical pressures.

Table of Contents

• Macro Strategy
• Key Market Data
• Appendix 1
• Analyst Certification
• Important Disclosures
• Additional Information

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