S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
- Asian stocks surge on Monday as hopes for a US-Iran peace deal trigger a risk-on rally.
- A slump in Oil prices eases inflationary concerns and further boosts investors’ confidence.
- A standoff over the Strait of Hormuz and Iran’s nuclear program might cap the optimism.
Most Asian stocks rally broadly at the start of a new week as developments over the weekend fuel hopes for a potential deal to end a nearly three-month-long Iran war and boost investors’ appetite for riskier assets. Japan’s Nikkei 225 ?roars past the 65,000 level, hitting a fresh record high, while South Korea, Hong Kong, and Indian equities see sustained upward momentum.
Axios reported late Saturday, citing a US official, that the US and Iran are close to signing an agreement that involves a 60-day ceasefire extension during which the Strait of Hormuz would be reopened. Adding to this, US President Donald Trump said that the framework for a peace deal with Iran was largely negotiated. The optimism leads to a steep decline in Crude Oil prices and eases inflationary concerns, triggering a fall in bond yields and driving stock prices higher.
However, the US and Iran remained at odds over key issues, including blockades on the Strait of Hormuz and Tehran’s nuclear program. Furthermore, US President Donald Trump said on Sunday that he had told his representatives not to rush into any deal with Iran. Meanwhile, sticky US inflation data and the recent hawkish remarks from influential Federal Reserve (Fed) officials build the risk of a rate hike, which should further keep the market enthusiasm in check.
Meanwhile, the liquidity is likely to remain low in the wake of holidays in most European and US markets. Nevertheless, the incoming geopolitical headlines will continue to play a key role in driving the broader market risk sentiment and produce some meaningful trading opportunities.
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