Global equities rise as oil gains on stalled US‑Iran talks
Oil futures edged higher on Monday, with Brent crude trading just over 1% up at $106.47 a barrel after touching a multi‑week peak of $108.50 earlier in the session. The rise reflects worries that stalled US‑Iran negotiations could disrupt exports from the Middle East, especially through the Strait of Hormuz, where vessel traffic remains minimal.
Global equity markets opened in positive territory. MSCI's All‑World index inched up about 0.2%, while Europe’s STOXX 600 added 0.53%. In Asia, Tokyo and Seoul markets climbed toward record levels, buoyed by renewed optimism around artificial intelligence. Wall Street futures were largely unchanged.
Analysts highlighted a packed agenda ahead. Michael Brown of Pepperstone noted five G10 policy decisions and earnings reports from five of the so‑called “magnificent 7” tech giants, which together represent roughly 45% of the S&P 500 market cap. Meanwhile, Goldman Sachs lifted its year‑end Brent price target to $90 a barrel, up from $80, citing expectations of normal Gulf exports by late June and warning of possible sharp price moves if inventories fall to historically low levels.
Tech earnings remain the focal point for investors. Intel’s strong second‑quarter outlook sparked fresh buying, pushing chip‑heavy markets in Taiwan and South Korea above Germany’s. Upcoming reports from Microsoft, Alphabet, Amazon, Meta Platforms and Apple will be closely watched for capital‑expenditure guidance.
Central banks are expected to hold rates steady this week. The Federal Reserve is likely to keep policy unchanged in what may be Jerome Powell’s final meeting as chair. The European Central Bank and Bank of England are also set to pause, though their commentary could shape expectations for future hikes. The Bank of Japan is slated to maintain its short‑term rate at 0.75% on Tuesday. The dollar slipped slightly, the euro quoted at $1.1740, and the yen hovered just below the critical 160 level.
