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Crude shakes off Trump’s move toward a supply deluge, May says terror threat at “critical” level, and Indian assets rocked by raids into Pakistan. Here are some of the things people in markets are talking about.

Oil’s Hot Streak

West Texas Intermediate futures are on a five-session winning streak ahead of Thursday’s OPEC meeting, with a growing consensus among member states and other major producers that output curbs should be extended into 2018. The White House’s recently-revealed plan to cut the national debt involves selling off half of the U.S. strategic petroleum reserve, a move it estimates could raise more than $16 billion over the next decade. Crude futures had dropped as much as 1 percent overnight on the news before recovering during the New York trading day.

‘Critical’ Threat

U.K. Prime Minister Theresa May said another attack could be imminent following a suicide bombing at a concert in Manchester, upgrading the terrorist threat to “critical.” At least 22 people, including children, died as a result of yesterday’s attack, authorities said, for which the Islamic State claimed responsibility. Following the bombing, May announced that all campaigning for next month’s general election has been suspended. U.K. financial assets showed resilience during the European trading day in the wake of this tragedy.

India-Pakistan Tensions 

Indian stocks and the rupee suffered on Tuesday after the Indian Army announced military raids in a portion of Kashmir controlled by Pakistan, adding to already heightened tensions in the region. Stocks slipped from multi-year highs on Tuesday with commodity producers dragging on the MSCI Asia Pacific Index. S&P/ASX 200 futures are in positive territory as of 5:30 a.m. Toyko time. Nikkei 225 futures are also pointing to a higher open, as softness in the yen buoys domestic equities. Elsewhere in currencies, the Chinese yuan is caught in a tug of war between policymakers guiding it higher and traders pushing it lower.

U.S. Stocks Near Record

The S&P 500 Index just missed a record closing high Tuesday, nudging above 2,400 on its fourth straight session of gains. Financials led the way higher amid a slight steepening in the yield curve as 10-year Treasuries fell. Data released Tuesday showed economic momentum is building in the euro area. Reports that Trump urged intelligence chiefs to deny any collusion between his campaign and Russian officials weighed on the greenback overnight. However, the Bloomberg Dollar Spot Index managed to advance during New York trading hours and was among the best-performing G10 currencies.

Coming Up…

Bank of Japan Governor Haruhiko Kuroda is scheduled to speak in Tokyo at the central bank’s international conference, along with former U.S. Fed Chair Ben Bernanke. The Gfk report on German consumer confidence for June is projected to hold steady at 10.2 after Tuesday’s GDP report showed the nation’s economy is firing on all cylinders. Other data slated for release include New Zealand’s trade figures for April, Australia’s Westpac Leading Index for April, and the final reading of Japan’s leading and coincident indexes for March.

What we’ve been reading 

This is what caught our eye over the last 24 hours.

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