Iran Bets Set a Record for Global Stocks, While the Dollar Drops – Asia Market Wrap
Global equities rose to a new all-time high as investors re-entered the stock market on signals that the US and Iran may extend their ceasefire, allowing markets to unwind war-related risk premiums.
The MSCI All Country World Index, the broadest measure of global shares, surged as much as 0.3% to a record and is on track for its tenth day of gains. That marks the longest winning run since September. Asian stocks jumped 1.3%, nearly erasing their war-related losses, as optimism over a possible US-Iran ceasefire and strong US business profits lifted mood.
Asian markets rose after Wall Street indices closed at record highs, with traders anticipating that a de-escalation of the Middle East crisis will lower oil prices and improve economic development. Equity-index futures imply that the surge will continue in Europe.
According to a person familiar with the situation, the United States and Iran are considering extending their truce, which expires on Tuesday, for another two weeks to give them more time to negotiate a peace agreement.
Mediators between the two parties are attempting to set up technical conversations to tackle the most difficult problems, according to the individual, who requested not to be named because the discussion is sensitive. These include reopening the Strait of Hormuz and Iranian nuclear enrichment.
