Dollar as `Wrecking Ball' May Blot Out Iran's Market Impact
- Reaction to U.S. sanctions plan is limited despite oil rally
- Dollar strength, stock recovery still drives market narrative
BofAML's Sharma Remains Bullish on U.S. Dollar
For all the diplomatic furor the U.S. created when it walked away from the Iran nuclear accord, it’s unlikely to knock global financial markets out of the trend that’s become entrenched in recent weeks.
European stocks rose for a fourth-straight day on Wednesday, boosted, rather than buffeted, by what UBS Group AG’s wealth-management unit called “modestly higher” oil prices. Currencies of energy-producing nations were mixed against a dollar that has strengthened on six of the past seven days. Haven assets including gold declined, U.S. junk bonds appeared unperturbed, and while Treasury yields rose, that was at least as much due to the preoccupation with upcoming supply as it was down to the implications for inflation.