The United States and Iran have reached a deal on an extended ceasefire, pending final approval from President Trump, a development that eased some geopolitical risk even as markets weigh fresh central‑bank pressure.
In corporate news, SpaceX is reported to have trimmed its IPO target valuation to at least $1.8 trillion as the company recalibrates expectations ahead of a potential flotation.
Monetary policy chatter turned hawkish. Fed Governor Lisa Cook signaled concern on Tuesday, saying inflation expectations were moving in the wrong direction — comments that add to investor caution about the path for U.S. rates. In Europe, inflation in Italy, France and Spain has accelerated more than expected, strengthening arguments for further ECB rate hikes; Italy’s economy surprised on the upside with 0.3% quarter‑on‑quarter growth in 1Q26 versus consensus of 0.2%.
Asia’s central banks have been active: the Bank of Japan spent a record $74 billion supporting the yen last month, and a former BOJ board member said the bank will probably raise rates in June, underscoring a broader shift toward tighter policy amid rising global inflation.
Markets reacted to the mix of easing geopolitical risk and firmer policy signals. European stocks gained about 0.6%. In Asia, Japan led with a 1.4% rise; Hong Kong added 0.7% while mainland Chinese shares slipped 0.4%. US futures pointed to modest gains on the open. Oil fell roughly 2%, with Brent crude trading near $92 a barrel.
Leave a Reply