As of 12:00 Germany time (CEST, UTC+2)
TL;DR: Stocks firmed on Friday as investors continued to price tentative progress in U.S.-Iran talks, but the move remained cautious as oil rebounded, the dollar held near six-week highs and unresolved Strait of Hormuz risks kept inflation concerns in focus.
In Asian Equity Markets stocks rose on Friday as optimism around a potential U.S.-Iran diplomatic off-ramp supported risk appetite, despite continuing uncertainty around the terms of any agreement. Japan’s Nikkei advanced alongside broader regional gains, while global equities also firmed modestly. The tone was supported by continued AI momentum after Nvidia’s results, although investors remained sensitive to oil headlines and the possibility that negotiations could stall.
In Currency Markets the U.S. dollar remained near a six-week high as markets balanced hopes for progress in U.S.-Iran talks against the risk that elevated oil prices keep inflation pressure high. The dollar index traded around 99.23, close to its recent peak of 99.515, while the euro eased to roughly $1.1607 and sterling slipped toward $1.342. The yen remained near 159 per dollar after Japan’s core inflation slowed to a four-year low, complicating the Bank of Japan’s policy outlook even as the currency stayed close to levels watched for possible intervention.
In U.S. Equity Markets stocks ended slightly higher on Thursday as investors weighed Nvidia’s results, oil volatility and signs of possible progress in U.S.-Iran negotiations. The Dow Jones Industrial Average rose 0.55 percent and reached a record close, while the S&P 500 gained 0.17 percent and the Nasdaq Composite added 0.09 percent. Nvidia slipped after its quarterly report despite strong results, while Walmart fell after a cautious outlook that included fuel-cost pressure. Quantum-related shares rallied on news of potential U.S. government investment in the sector.
In Commodities Markets oil rebounded on Friday as investors questioned whether U.S.-Iran peace talks would deliver a near-term breakthrough. Brent crude rose to around $105.88 per barrel, while WTI traded near $98.88, leaving both benchmarks still on track for weekly losses after the earlier decline on hopes of diplomatic progress. The market remained highly headline-driven, with unresolved issues around Iran’s uranium stockpile and control of the Strait of Hormuz keeping a geopolitical risk premium in place.
In European Equity Markets stocks rose to more than two-week highs as investors responded to signs of progress in U.S.-Iran negotiations and continued strength in technology shares. The pan-European STOXX 600 gained around 0.6 percent, with semiconductor-linked names supported by the AI theme after Nvidia’s earnings. Luxury shares also benefited from stronger Richemont results, while Adidas and Puma rose after an upbeat forecast from Deckers Outdoor. The broader European tone improved, but the region remained particularly sensitive to energy-price volatility given its exposure to imported energy.
In Bond Markets government bond yields eased modestly as hopes for a U.S.-Iran resolution reduced some immediate pressure from the recent inflation-driven selloff. The U.S. 10-year Treasury yield fell to roughly 4.57 percent, while German Bund yields also moved lower after weak European activity data and still-fragile business sentiment. The move offered some relief to equities, but the broader rates backdrop remained restrictive, with investors still focused on whether elevated oil prices could delay central bank easing or revive more hawkish policy expectations.
