- Market hopes for a deal are still alive.
- US stocks are on their best run since 2023.
- Growth divergence reflects equity performance.The The
- AI theme is roaring ahead as we move into June.
- What to watch in the new month.
- Key events in the coming week: Global PMIs, US NFPs, SpaceX hype.
At the start of the new week, the oil price is up by 1.5%, and Brent crude is trading above $93 per barrel. This comes after the US and Iran both exchanged fire over the weekend. Stocks have been slightly impacted by this. European futures point to mild losses later this morning, while US equity futures suggest that further gains are coming, extending last week’s record highs.
Even though there have been attacks from both sides, the market is holding onto the fact that negotiations are ongoing, and an elusive Iran/ US deal to end the war in the Middle East and to reopen the Strait of Hormuz will still be found. As the focus switches to a raft of macro releases later this week, investors will need to watch how this plays out, and any delay in reaching a deal could knock market sentiment.