Iran opens Gulf of Hormuz; markets cheer, ignoring conditions; Canada data resilient; India loan growth surges; Singapore exports surge; risk appetite jumps; UST 10yr at 4.25%; gold rises as oil retreats; AU$1 = 71.7 USc

Here's our summary of key economic events overnight that affect Australia with news Iran announced it would open the Strait of Hormuz so long as the ceasefire by Israel holds in Southern Lebanon. This has had dramatic immediate effects on financial markets. The US oil price fell more than -11% (although the international price only fell -7.5%). US Treasury yields fell back. And the US dollar rose. But gold also rose, even as markets turned sharply into 'greed' mode. And reinforcing the 'greed' theme, bitcoin jumped out of its tight recent range. Wall Street hit a new record high. The forward 12-month P/E ratio for the S&P 500 is now 20.9.

The Iranian announcement comes with fish-hooks requiring ship passage on Iranian terms. But it looks like the US has agreed to that. It also is conditional that Israel doesn't violate that Lebanese ceasefire, which given their history is a long shot.

But there are reports that ships are already on their way through the Persian Gulf waterway.

In Canada, small business sentiment rose in April, an unexpected shift but likely due to local election results. The trade group that does this survey says it is still weak, but it is actually back to the levels that prevailed prior to the pandemic.

But Canadian housing starts sagged somewhat in March, coming in below February levels and what was expected. But they are now +6.9% higher than year-ago levels.

Indian loan growth reached +16.1% in the year to March according to official data released overnight. That is the fastest pace they have recorded since they started tracking this metric in April 2025.

In China, their construction machinery sector rose strongly in March with excavator sales up nearly +30%, of which domestic demand was up almost +24%.

Malaysian CPI inflation remained tame in March, up just +1.7%, although that was their highest rate since the beginning of 2025. They also reported that Q1-2026 economic activity rose +5.3%, and slightly less than the +5.5% expected.

Meanwhile, Singaporean exports were up +15.3% from a year ago, their second fasted monthly rise since mid 2024.

The UST 10yr yield is now just on 4.25%, down -6 bps from this time yesterday and the same for the week. The key 2-10 yield curve is at +54 bps (+1 bp). Their 1-5 curve is at +20 bps (-3 bps) and the 3 mth-10yr curve is at +58 bps (-6 bps). The China 10 year bond rate is now at 1.76%, down -2 bps. The Japanese 10 year bond yield is up +1 bp at 2.42%. The Australian 10 year bond yield starts today at 4.98%, down -2 bps from yesterday, down -2 bps for the week. 

Wall Street is higher on Iran's announcement with the S&P500 up +1.2% in Friday trade to a record high and a +4.7% weekly gain. European markets were up between Frankfurt's +2.3% and London's +0.7%. Tokyo fell -1.8% in its Friday trade before the news, but up +3.6% for the week. Hong Kong was down -0.9% on Friday, and Shanghai was down -0.1%. Singapore was dipped another -0.2%. The ASX200 also dipped -0.1% to end its week up +0.4%. 

The Fear & Greed index is now in the 'greed' zone, shifting from 'fear' last week.

The price of gold will start today up +US$69 at US$4857/oz, up +US$89 for the week. Silver is up +US$3 at US$81.50/oz, up +US$5 for the week.

American oil prices are down -US$10.50 at just over US$84.50/bbl, while the international Brent price is down -US$8.50, and now at US$91/bbl. These new levels are down -US$12 and -US$4/bbl respectively. North American rig counts fell again.

The Australian dollar is up +10 bps from yesterday at this time at 71.7 USc, down -10 bps for the week. Against the Japanese yen we are down -50 bps at ¥113.6. Against the euro we are up +10 bps at just on 60.9 euro cents. 

The bitcoin price starts today at US$77,134 and up +3.7% from this time yesterday. A week ago it was US$72,976, so a +5.7% rise since then. Volatility over the past 24 hours has been moderate at just on +/- 2.6%.