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Stocks Climb to Fresh Highs Through London Close

EQUITIES
  • Markets head through the London close with US yields off earlier highs, but equity markets comfortably on the front foot, with indices close to session highs.
  • Stock markets have been edging higher from the US cash equity open, with gains bolstered by a softer oil price, as US looks to relieve sanctions on Venezuelan oil supply in response for freer elections. US markets are outperforming Europe, with the e-mini S&P through Friday highs and within range of last week's best levels of 4430.50.
  • Equity gains driven by Charles Schwab (post-earnings), Pfizer (cutting Paxlovid cost base), and come ahead of further key earnings later this week: BofA, J&J, Goldman Sachs, Procter & Gamble, Tesla, Netflix among others.
  • There has been little new news out of the Israel-Hamas conflict, but Israeli assets continue to suffer: Monday has seen USD/ILS top 4.00 for the first time in 8 years, while CDS spreads widen to the highest in 10 years.

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