Bank of Japan: The Bank of Japan raised its key interest rate by 25 bps to its highest level in 10 years, at 1%, as expected, and signaled that further policy normalisation lies ahead.
US-Iran Peace Agreement: Markets were driven by news that the United States and Iran reached an interim agreement to reopen the Strait of Hormuz and begin negotiations aimed at ending the conflict. The agreement, expected to be signed in Switzerland, includes a 14-point framework covering an extension of the ceasefire and discussions surrounding Iran’s nuclear program. The development significantly reduced geopolitical risk across global markets.
Precious Metals Surge: Gold and silver posted strong gains despite the improvement in risk sentiment. Gold rose 0.93% to $4,302, while silver climbed 1.85% to $69, as investors continued to seek protection against ongoing geopolitical and inflation uncertainties.
Oil Markets Reprice Lower: Energy markets reacted sharply to the prospect of normalised shipping through the Strait of Hormuz. Brent crude fell 3.0% to $82.93 as traders unwound supply disruption concerns and reduced geopolitical risk premiums that had built up during the conflict.
Global Equity Rally: Equities moved sharply higher as investors embraced the easing geopolitical backdrop. The S&P 500 gained 1.65% to $7,562, led by technology and growth stocks. European equities also advanced to record levels as sentiment improved globally.
SpaceX Momentum Continues: SpaceX extended its post-IPO rally, rising a further 12.53% in its second day of trading. Following last week's blockbuster listing, the company remains a major driver of market attention and has reinforced optimism toward the broader technology sector.
Central Banks in Focus: With geopolitical concerns easing, investor attention is shifting back toward monetary policy, as focus continues to build ahead of this week's Federal Reserve meeting.
Economic Calendar
Today
- China industrial production rose from 4.1% to 4.5% Y/Y.
- China retail sales fell from 0.2% to -0.6% Y/Y.
- Reserve Bank of Australia keeps policy rate fixed at 4.35%.
Key Market Moves Today
- S&P 500 Futures: -0.06% ($7,622)
- U.S. 10-Year Yield: +0.20 bps (4.48%)
- Brent Crude: -0.20% ($83.00)
- Bitcoin: -0.53% ($66,142)
- Spot Gold: +0.35% ($4,326.6)
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