President Trump claimed (again) on Tuesday that a deal to end the Iran war is imminent, “We’re in the final throes of what will be a very, very good deal.” Nonetheless, Israel’s IDF launched fresh strikes on targets in Lebanon’s southern city of Tyre while issuing multiple evacuation orders which for the first time included the port’s Christian quarter.
On Monday, the Pentagon posted an updated list of Chinese companies it views as linked to China’s military and are therefore ineligible to participate in U.S. government contracts. The list includes Alibaba (e-commerce); Baidu (internet search); BYD & NIO (autos); and WuXi, RoboSense, & Unitree (robotics).
Amid ongoing equity market ebullience, the NFIB Small Business Optimism Index fell in May to 95.3 (vs. 96.0 est. & 95.9 in Apr.), its lowest level since Oct. ’24 and erasing almost all the gains since President Trump was elected for a second term. Rising prices and economic uncertainty from the Gulf war continue to depress business sentiment, with 70% of owners stating supply chain disruptions are negatively impacting their businesses. The share of owners citing inflation as their most important business problem (18%) rose for the 3rd straight month and the net share of owners raising selling prices rose to 36% (highest in 3 yrs.).
Bloomberg reports Trafigura Group has informed several Chinese smelters that they won’t receive ordered shipments of zinc concentrate from the Castellanos project in Cuba, as the U.S. ramps up pressure on Cuba via sanctions and an economic blockade that is restricting fuel supplies. Trafigura indicated it intends to replace Cuban material with other sources of feedstock.
Euro Stoxx 50 +0.8%, S&P futures +0.45% and Nasdaq futures +0.9%. DXY dollar index -0.3%, spot gold +0.3% and spot silver +0.65%. Brent futures -1.5% ($92.86) and WTI futures -1.9% ($89.63).
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