Global Markets Rally as Mideast Ceasefire Hopes Soften Oil Prices 📈

• Market Sentiment: Global equities surged on Wednesday following reports of a U.S. 15-point ceasefire proposal for the conflict with Iran. S&P 500 futures rose 0.9%, while Asian markets in Japan and South Korea gained approximately 2%. • Energy & Commodities: Brent crude futures dropped 6% to US$ 98.30 per barrel, offering slight relief to energy-dependent economies like Sri Lanka. However, prices remain 35% higher since the conflict began, maintaining pressure on Asian buyers of diesel and jet fuel. • Interest Rates & Inflation: Despite the temporary market bounce, central banks in Europe and Australia are still expected to hike rates to combat war-driven inflation. U.S. 10-year Treasury yields eased to 4.34% as investors reacted to the diplomatic headlines. • Currency & Credit: The U.S. Dollar weakened slightly, trading at 158.8 Yen. Concerns are emerging in credit markets, with major asset managers like Ares Management capping withdrawals in private debt funds due to rising financial stress. • Geopolitical Context: While the U.S. seeks a month-long truce, the situation remains "fragile" as military strikes continue and the U.S. prepares to deploy thousands of additional troops to the region.