
US Equities managed to recover all losses since the start of the Iran conflict, highlighting strong market confidence even amid rising geopolitical risks. This optimism persisted despite a rise in oil prices, driven by the U.S. blockade in the Strait of Hormuz, which typically would weigh on risk assets.
Investors remain cautiously optimistic that a deal could still be reached, especially after President Donald Trump suggested that Iran is willing to negotiate, helping support overall sentiment.
Looking ahead, attention is shifting toward corporate earnings, particularly from major banks like JPMorgan and Wells Fargo, which are expected to play a key role in determining the next direction for the market.
Asia-Pacific markets opened higher on Tuesday, supported by renewed optimism that a potential deal between the U.S. and Iran could still be reached, despite ongoing tensions.
Major indices across the region posted gains, with Japan’s Nikkei rising over 2%, while markets in Australia, China, and Hong Kong also moved higher. However, underlying concerns remain.
Meanwhile, oil prices pulled back, with both WTI and Brent declining, offering some relief to markets. Investors are now closely watching upcoming China trade data, which could provide further insight into the economic impact of the ongoing geopolitical situation.
Gold remains slightly higher around $4,765, supported by a weaker US dollar and continued optimism that US–Iran negotiations could resume, despite recent failed talks. Additional support comes from uncertainty around Fed policy, with mixed expectations between potential rate hikes due to rising inflation and possible rate cuts later in the year, both of which weigh on the dollar and favor gold. However, gains are limited by ongoing geopolitical tensions.
EUR/USD is trading near a six-week high around 1.1760, supported by a risk-on market sentiment as the Dollar Index dropping to multi-week lows. From a technical perspective, the pair maintains a bullish bias, holding above key support levels with momentum indicators suggesting further upside potential, as long as current support around 1.1630 holds.
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