US stock markets pushed sharply higher overnight after both the US and Iran announced that a peace agreement would be signed on Friday, paving the way for the full reopening of the Strait of Hormuz. The Dow Jones closed at another record high. Oil extended its recent decline with Brent and WTI falling to three-month lows, while gold surged more than 2% despite the improvement in risk sentiment. Attention now turns to the Bank of Japan and Reserve Bank of Australia policy decisions during today’s Asian session.
📊 Equities
US stock markets pushed sharply higher overnight after both the US and Iran announced that a peace agreement would be signed on Friday, paving the way for the full reopening of the Strait of Hormuz. While details of the agreement remain limited, the prospect of a de-escalation in the Middle East helped fuel a strong rally in risk assets. The Dow Jones closed at another record high.
🛢️ Oil
Oil prices extended their recent decline as traders priced in the reopening of the strategically important shipping route, with Brent and WTI crude falling to three-month lows.
🥇 Gold
Gold once again defied its traditional safe-haven relationship, surging more than 2% despite the improvement in risk sentiment.
💵 FX & Bonds
The optimism on Wall Street was not fully reflected across other markets, with both US Treasury yields and the US dollar drifting lower as investors continued to monitor developments and await further details on the agreement.
📌 Today’s Focus
Attention now turns briefly away from geopolitics and back to central banks, with both the Bank of Japan and the Reserve Bank of Australia set to announce their latest policy decisions during today’s Asian session.
🔹 Bank of Japan Rate Decision
🔹 Reserve Bank of Australia Rate Decision