-- Markets had their fun on Wednesday and on Thursday it's back to "reality," said Scotiabank.
Position covering drove exaggerated market responses to the fragile United States-Iran ceasefire on Wednesday, noted the bank.
It was only a matter of hours before doubts crept back into markets about how fragile the ceasefire is, stated Scotiabank.
Oil is up about US$4 to US$5/barrel, pointed out the bank. Stocks are broadly but gently lower, with North American futures down about 0.25%, European cash markets down by 0.25% to 1.25% after Asian equities backpedaled.
Currencies are mixed, added Scotiabank. Sovereign bond yields are higher by single digits across gilts and eurozone government bonds, as U.S. Treasuries and Canadian government bonds hold firm.