Macro update
Asian equities rally: Regional indices climbed to a six-week high, led by gains in Japan and South Korea, as optimism around potential US-Iran peace talks lifted risk sentiment.
Wall Street strength carries over: The S&P 500 closed near record levels while the Nasdaq extended its winning streak, supported by softer-than-expected US producer inflation data.
Oil volatility persists: Brent rebounded towards $95 but remained below $100, as markets weighed hopes for renewed diplomacy against ongoing disruption in the Strait of Hormuz.
Supply constraints remain acute: The strait is still largely shut, forcing refiners to source alternative barrels at elevated premiums despite tentative ceasefire conditions.
Dollar steadies, yields ease: The US dollar stabilised after a seven-day decline, while Treasury yields edged lower as easing inflation concerns and geopolitical optimism supported bonds.
Gold slips on risk-on mood: Bullion retreated from recent highs as improved sentiment reduced safe-haven demand, although prices remain underpinned by elevated oil-driven inflation risks.