Good morning and welcome to Markets Desk, your Monday market open.
Indian equities pushed higher at the open today as crude oil prices pulled back sharply on signals out of Washington that a diplomatic agreement with Iran may be within reach. President Trump held off on military action and indicated a deal was close, easing supply risk concerns and giving emerging market equities a lift across the region.
Shifting to currency markets, Washington has taken the unusual step of joining Japan in a coordinated intervention to support the yen, a move that raises serious questions about the dollar's role as a policy tool. The yen has been under sustained pressure, and the decision marks one of the first times in decades the United States has actively stepped in to stabilize a foreign currency, with significant implications for dollar dynamics and Treasury positioning globally.
And on the fiscal front, the Financial Times is asking a question bond markets have been quietly sitting with for some time now — whatever happened to prudence. Governments across the developed world have largely abandoned the practice of correcting budget deficits during periods of growth, and so far sovereign bond markets have absorbed the excess without demanding a meaningful premium. The question is how much longer that patience holds.
That's the tape. Markets Desk, signing off the floor.
