Welcome to Markets Desk, your midday read on what's moving and why.
Energy is the story of the session. June WTI crude closed up nearly seven percent, posting a three-week high, while RBOB gasoline surged almost five percent to a three-and-three-quarter-year high. The driver is the ongoing US-Iran conflict and mounting concern that the Strait of Hormuz could face a prolonged closure, choking a critical artery for global oil supply.
That surge in gasoline is rippling directly into the soft commodities complex. New York world sugar posted a three-week high, closing up more than four percent, while London white sugar climbed nearly three percent to a four-week high. The connection is straightforward — higher gasoline prices make ethanol more attractive as a blending fuel, which pulls sugar cane supply away from sweetener production and tightens the physical market.
Away from commodities, Chipotle delivered a pleasant surprise for investors. The burrito chain posted a same-store sales gain in the first quarter, defying Wall Street's concerns that higher menu prices were keeping diners away. The market responded decisively — shares jumped more than six percent after hours, a signal that consumers with discretionary income are still showing up.
That's the tape. Markets Desk, signing off the floor.
