EU officially announced the inauguration of INSTEX; Iran related SPV!
Market News
– On Friday and after a long period of delay, EU members officially announced the inauguration of their Iran related SPV, named INSTEX. Foreign ministers of UK, France and Germany noted that the INSTEX is to engage in trades of humanitarian goods at first yet it will grow into sanctioned trades after a while. It seems that EU powers insist on Iran joining FATF before any pragmatic and real action happens via the SPV. Iran shall announce a domestic counterpart in charge of doing business with European nations under the INSTEX context. An experienced German banker, Per Fischer, will be the manager of this structure while members from France and EU participates as well.
– After Germany’s government decision to ban Mahan Air flights in its airspace, the chair of Iran Air announced that its airliners have no difficulties landing in any EU members. Moreover, Farzaneh Sherbanfi told the press that a dedicated SPV will be established between Iran Air and EU members exclusively for air transports in order to facilitate any airliner purchases.
In the Market
Equities ended a trendless session widely lower as even the news of a dedicated SPV and global commodities advancements could no lift the market up. TEDPIX (-0.27%) lost a soft 439 point to close below the 160K level. This is while IFEX (+0.44%) performed a bit better and advanced to almost near 2,000 level. Analysts believe that the ambiguities of this so-called SPV along with its vague interpretation by other parallel markets made investors indecisive to get deep today.
FX and gold coins markets were also affected by the news of EU’s SPV, however, the intensity of impact was lower than expected. This means that market participants have less faith than before in INSTEX being holistic enough to cover what Iran has been lost in JCPoA.
Today only micro to mid-sized sectors like Cement (+0.66%) and Information Technology (+1.35%) were under investors eyes only because of seasonal demands and some rumours on price hikes like what happened before for the Auto (-2.03%) sector.
In general, investors are numb towards good performance reports and far better than expected export stats. It seems that there is a giant cloud of hesitation and doubt covering their eyes which is only logical considering the current situation of the nation’s economic and political status.
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