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Commerzbank Says Oil Retreats From Recent Rally, Treasuries Lower, US Equity Futures Tad Higher

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Brent crude has fallen below $89 per barrel, reversing some of the gains from late Monday's rally, according to Commerzbank in a note.

Treasury yields have eased from Monday's highs, while the US equity futures have edged modestly higher, wrote the bank in a note.

The US has carried out strikes on targets in Iran for a tenth straight day. President Donald Trump warned that Iran would "pay" if US troops are killed, said Commerzbank. Meanwhile, regional mediators have proposed a 10-day ceasefire.

The US has announced a new 50% tariff on $20 billion of Canadian imports. Meanwhile, the European Union is on track to meet the $1.35 trillion spending and investment target agreed with President Trump, added the bank.

In Europe, British Finance Minister Rachel Reeves has resigned, and new Prime Minister Andy Burnham has appointed John Healey as her successor.

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