NextEra Energy Seeks Dominion Merger: AI Data Center Capex Bonanza Drives Utility M&A to Unlevel Playing Field

Expectations for S&P 500 companies that will begin reporting next week are flying pretty high, but only for a select few, notes HSBC.

Headlines: A calmer end to the week for markets? Iran's strategy in leveraging on control over the Strait of Hormuz looks to be working Global oil supply rose 4.1 million bpd in June as flows through Hormuz resumed, but remained 9.4 million bpd behind pre-war levels - IEA How have interest rate expectations changed after this week's events? Bank of Japan is set to keep interest rates unchanged at the July meeting, maintain tightening guidance German headline annual inflation confirmed at 2.3% in June, core prices also hold steady French inflation confirmed to fall in June, easing pressure on the ECB US earnings season is just around the corner Markets: WTI crude up 0.7% to $72.60 European indices lightly changed, S&P 500 futures down 0.1% JPY leads, USD and CHF lag on the day US 10-year yields up 0.6 bps to 4.547% Gold down 0.3% to $4,107 Bitcoin up 1.7% to $64,368 It was a slower session as markets settle down with a slight sense of calm in the final stretch of the week. US-Iran developments continue to hold in limbo, keeping markets on edge for the most part. The latest twist of optimism came from earlier in the day with a US official claiming that negotiations could still yet take place. But whatever the case is, the Strait of Hormuz is now in de facto closure again. So, that is what it is. Oil prices are sitting higher with WTI crude up 0.7% to $72.60. Meanwhile, European stocks are little changed and more mixed on the day. US futures are also not hinting at much with tech shares slipping back a little. S&P 500 futures are down 0.1% with Nasdaq futures down 0.3% on the day. In other markets, the dollar is also little changed and holding more mixed overall today. EUR/USD is flat at 1.1430 with GBP/USD up just 0.1% to 1.3425 currently. The yen is a notable mover with USD/JPY dropping down by 0.3% to 161.80 levels after Japan signaled a massive pension shift earlier in the day. As for bonds, 10-year yields in the US are up just 0.6 bps to 4.547% so that is not

Despite US president Trump saying that the ceasefire deal is "over", things have not gone up in flames just yet. The US and Iran are still exchanging strikes but neither side appears to be very interested to take a step further to escalate things to a point where we see a complete reset on relations. That is not to say the current situation is not bad though. It is that things can still get worse, should either side decide to escalate things from a military standpoint. One encouraging headline from earlier is that a US official is claiming that nuclear/uranium talks may still proceed accordingly. For now though, the Strait of Hormuz is pretty much in de facto closure again as ship traffic grinds to a standstill. Meanwhile, both sides appear to be disinterested to resume negotiations but at the same time reluctant to escalate things from a war perspective. So, the limbo is pretty much keeping markets in check. Traders and investors will continue to hope for things to take a turn for the better. And in a time like this, a quieter period might be better as it means less likelihood of both sides squabbling and exchanging more volleys again. But as mentioned, tensions remain high and things can easily switch back on at any time. Oil prices look set to snap four straight weeks of losses with WTI crude up 0.6% to $72.50 today. The gains this week are bordering on 6% despite the retreat overnight. Meanwhile, US stocks kept with a more solid rebound yesterday as tech shares lead the bounce this week. The S&P 500 is now up 0.8% and Nasdaq up 1.4% this week, as investors hope to recover some poise in July after a rather poor June showing. The mood music in US futures now is looking more pensive though with S&P 500 futures now down 0.1% and Nasdaq futures down 0.2% today ahead of European morning trade. Elsewhere, the dollar is also slightly lower with USD/JPY a notable mover - being down 0.5% to 161.60. That follows from some remarks by Japan finance minister Katayama earlier

A violent rotation is taking place under the hood of the stock market ahead of second-quarter earnings.

Headlines: US president Trump reaffirms that Iran called a while ago and that they want to make a deal Oil prices continue to surge amid heightened US-Iran tensions and renewed supply fears Dollar holds lower after Trump says that Iran wants to make a deal again ECB's Escriva: the ECB cannot adjust monetary policy in response to every geopolitical development All members viewed risks to inflation outlook as being to the upside - ECB accounts Japan chief cabinet secretary says government is watching markets with high sense of urgency Markets: WTI crude up 0.7% to $74.01 NZD leads, USD and CAD lag on the day European indices slightly higher; S&P 500 futures up 0.2% US 10-year yields up 2 bps to 4.587% Gold up 0.7% to $4,105 Bitcoin up 1% to $62,704 It was a pensive session as market players took the time to digest the latest US-Iran developments this week. While the US and Iran continue to exchange strikes against each other, US president Trump proclaimed that Iran had called him up earlier today in asking for a deal to be made. Sound familiar? It is because that is exactly the same kind of situation we found ourselves before the ceasefire deal was brokered. So, more than a month later and yet we are still back to dealing with the same narrative as before. Nonetheless, it at least still shows some appetite for TACO/de-escalation. That being said, markets remain cautious with oil prices continuing to stay more volatile on the session. WTI crude fell to around $72.40 before trading back up by 0.7% now to $74.01 on the day. That comes as more headlines crossed the wires in indicating further attacks between the US and Iran in the meantime. The US dollar also fell a bit early on but have now pared most of those losses. EUR/USD went up to a high of 1.1450 but is now trading back to 1.1425, just up 0.1% on the day. Meanwhile, GBP/USD also traded up to 1.3430 before falling back to flat at 1.3385 currently. Besides that, equities remain cautious as well but tech shares

S&P 500 Index futures climb 0.2% as of 7:43 a.m. in New York. The US military struck Iran for a second day and Tehran retaliated against American allies in the Persian Gulf.