📈 Global Markets Rise Amid US-Iran Peace Talk Hopes

Global markets advanced on Friday as investors closely monitored US-Iran peace talks to end a nearly three-month-old Middle East war, though key disagreements persist over Tehran's uranium stockpile and control of the critical Strait of Hormuz waterway. Prolonged energy disruptions continue to fuel global inflationary pressures and reshape interest rate expectations. • Equities & Currencies: MSCI’s Asia-Pacific index rose 0.3%, Japan’s Nikkei gained 2%, and US futures edged up 0.2%. The US Dollar index held near a six-week high at 99.247, supported by safe-haven demand and rising Treasury yields, while the Euro neared a six-week low at $1.1614. • Energy Markets: Oil prices remain volatile but well above pre-war levels. Brent crude rose 2% to US$ 104.71 a barrel (down 6% for the week), while US WTI grew 1.66% to US$ 98.01 a barrel. • Macroeconomic Impact: The borderless energy shock has rewired the monetary policy outlook. Traders are now pricing in potential US Federal Reserve interest rate hikes by year-end, a sharp reversal from pre-war expectations of two rate cuts. Meanwhile, Japan's core inflation slowed to a four-year low in April, complicating the Bank of Japan's rate-hike path.