<ul>
<li>STOXX 600 up 0.5%</li>
<li>Iran-U.S. fight for control of Strait of Hormuz</li>
<li>HSBC falls after profit miss</li>
<li>Wall St futures higher Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at</li>
</ul>
<h3>SOME NACHOS WITH YOUR TACOS, SIR?</h3>
If the Trump era has brought one thing it is an abundance of acronyms relating to trading. “TACO” - Trump Always Chickens Out - cropped up last year in relation to the U.S. president’s propensity to back down from a tariff-related at the eleventh hour, which almost invariably sparked a relief rally in stocks, bonds and even crypto.
With the war in Iran now in its tenth week, oil comfortably above $100 a barrel and global supplies of anything from jet fuel, to fertiliser and helium, which is critical for production of chips, starting to run low, traders have come up with a new one. “NACHO - Not A Chance Hormuz Opens”, a snappy way of describing the old “higher for longer oil, inflation and borrowing rates” trade.
There are a few variations, including “Nothing Actually Changes Overall” and “Not Actually Changing Hormuz Opening”, but the sentiment is clear. There are even new items that might land on the markets menu as the conflict drags on.
“On the whole, Thursday’s ‘TACO Moment’ (Trump Always Chickens Out) morphed into a ‘NACHO Moment’ (Nothing Actually Changes Overall); now, markets are desperately in search of a ‘TORTILLA Moment’ (Take Off Ramps To Initiate Long-Lasting Accord) instead,” Pepperstone strategist Michael Brown wrote in his note this morning.
(Amanda Cooper)
<h3>EARLIER ON LIVE MARKETS: OIL SHOCK IS A CRISIS DELAYED, NOT AVERTED CLICK HERE BETTER KEEP AN EYE ON TAIL RISKS CLICK HERE WHY INFLATION MIGHT BE HERE FOR LONGER CLICK HERE IGNORING THE CONFLICT? CLICK HERE STOXX 600 FINDS ITS FOOTING CLICK HERE EUROPE BEFORE THE BELL: FUTURES SOFT AS TENSIONS RATCHET UP CLICK HERE FREEDOM? WHAT FREEDOM? CLICK HERE</h3>
Oil-tanker traffic through the Strait of Hormuz
<img src="https://imageproxy.pbkrs.com/https://www.reuters.com/graphics/AUTOMATED-20260502/HORMUZ-TRANSITS-1Y/byvrnngjjve/chart.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" width="1200" height="960" original-src="https://imageproxy.pbkrs.com/https://www.reuters.com/graphics/AUTOMATED-20260502/HORMUZ-TRANSITS-1Y/byvrnngjjve/chart.png"/>
Crude oil at sea
<img src="https://imageproxy.pbkrs.com/https://www.reuters.com/graphics/AUTOMATED-20260504/CRUDE-OIL-AT-SEA-1Y/akveyydbovr/chart.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" width="1420" height="886" original-src="https://imageproxy.pbkrs.com/https://www.reuters.com/graphics/AUTOMATED-20260504/CRUDE-OIL-AT-SEA-1Y/akveyydbovr/chart.png"/>
Europe Gas Stocks
<img src="https://imageproxy.pbkrs.com/https://fingfx.thomsonreuters.com/gfx/mkt/gdvzaeqlwpw/Pasted%20image%201777973611173.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" width="955" height="720" original-src="https://imageproxy.pbkrs.com/https://fingfx.thomsonreuters.com/gfx/mkt/gdvzaeqlwpw/Pasted%20image%201777973611173.png"/>

On May 4 (ET), the US military announced it had forcibly opened a free-passage corridor through the Strait of Hormuz. Iran immediately fired warning shots at a US destroyer, while Trump threatened that any attack on American vessels would result in Iran being "blown off the face of the earth." Meanwhile, Iran had just submitted a 14-point ceasefire proposal to Washington — covering US troop withdrawal, lifting of the naval blockade, and sanctions relief — only to be met with Trump's flat rejection: "unacceptable." With gunfire and diplomacy playing out simultaneously, will the Middle East tip toward war or peace? And what does it mean for oil prices and global assets? Share your take below.

On May 4 (ET), the US military announced it had forcibly opened a free-passage corridor through the Strait of Hormuz. Iran immediately fired warning shots at a US destroyer, while Trump threatened that any attack on American vessels would result in Iran being "blown off the face of the earth." Meanwhile, Iran had just submitted a 14-point ceasefire proposal to Washington — covering US troop withdrawal, lifting of the naval blockade, and sanctions relief — only to be met with Trump's flat rejection: "unacceptable." With gunfire and diplomacy playing out simultaneously, will the Middle East tip toward war or peace? And what does it mean for oil prices and global assets? Share your take below.

US-Iran Strait Showdown! Is There Still Room for Negotiation?

HSBC

00005

HSBA

HSBH

- The STOXX 600 index increased by 0.5% amid ongoing tensions between Iran and the U.S. over the Strait of Hormuz.  
- HSBC shares declined after reporting profits below expectations, while Wall Street futures showed an upward trend.  
- New trading acronyms like "NACHO" and "TACO" reflect market sentiment as traders adjust to evolving geopolitical and economic conditions.

LIVE MARKETS-Some NACHOs with your TACOs, sir?