Morning Note: A Round-up of Global Financial Market News.

Market News

Risk assets gained after President Trump called off new strikes and signalled a peace agreement could be signed in Europe as soon as this weekend. Iranian officials have not yet formally approved the text of any agreement. Brent Crude has fallen back to $88.50 a barrel.

US equities posted strong gains last night: S&P 500 (+1.8%); Nasdaq (+2.5%). SpaceX is expected to begin trading on the Nasdaq today after raising $75bn in the biggest-ever IPO. Shadow markets are pricing in a jump of at least 35% on its debut. In Asia, equities were also firm: Nikkei 225 (+2.8%); Hang Seng (+1.6%); Shanghai Composite (+1.2%). South Korea’s Kospi — a barometer for AI investments – rose 5%. The FTSE 100 is currently 0.8% higher at 10,387, while Sterling trades at $1.3390 and €1.1580.

Gold rose by 3%, although it has given back some of its gains this morning. It currently trades at $4,175 an ounce. The yield on the US 10-year Treasury sits at 4.47%. Pimco said bond investors will be watching next week’s Federal Reserve meeting for clues on how new Chair Kevin Warsh will put his stamp on policy and communication.

The ECB increased interest rates for the first time in three years. The quarter point raise to 2.25% is the first by a G7 central bank in response to the threat of inflation as a result of the war in the Middle East. Officials see the next increase possibly as soon as July if the consequences of the conflict require it. The 10-year German Bund is currently yielding a touch below 3.0%.

Source: Bloomberg