The United States and Iran will begin peace talks tomorrow in Islamabad, marking the first direct diplomatic engagement since the recent Gulf ceasefire. The dialogue comes as Iran maintains control of the Strait of Hormuz, the vital shipping corridor for a fifth of global oil supply. Investors are watching closely for any breakthrough that could stabilize energy flows.
At the same time, the U.S. Consumer Price Index (CPI) report due later today is keeping markets cautious, with traders warning of stagflation risks as growth slows and inflation proves sticky. The data will help shape expectations for Federal Reserve policy heading into the second quarter.
In a geopolitical development drawing global attention, Taiwan’s opposition leader met Chinese President Xi Jinping in Beijing today. Xi reiterated that peaceful reunification is “inevitable”, reinforcing Beijing’s commitment to its long‑term cross‑strait strategy. The meeting — the highest‑level contact between the sides in years — has fueled hopes for a more stable East Asia outlook, particularly in trade and supply‑chain relations.
Shares of Porsche AG fell as much as 1.5% in Frankfurt trading after the automaker reported lower quarterly sales, citing a demand slump in China and delays linked to an ongoing model revamp. The company said modernization of its 911 and Macan lines will weigh on output until the second half of the year.
Kyrylo Budanov, Ukraine’s top negotiator with Russia, said he is hopeful a peace agreement could be reached soon, the most upbeat assessment from Kyiv in months. The comment boosted sentiment in European defense and infrastructure stocks, showing tentative signs of conflict fatigue lifting across the region.
European equities gained an average 0.9%, led by industrials and energy. Asian markets closed higher, with Hong Kong’s Hang Seng up 0.6% and Japan’s Nikkei 225 surging 1.8%. U.S. futures traded flat ahead of the CPI release and the Pakistan peace summit. Brent crude held steady at $96 a barrel as traders balanced diplomatic optimism against continued supply uncertainty.
Diplomacy is once again setting the global market rhythm: as Washington and Tehran prepare to meet, investors are weighing whether a fragile détente — alongside inflation data — can slow two years of geopolitical and economic volatility.
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