US stock futures rose, while Brent declined for the third day in a row as traders awaited information on a potential US-Iran peace deal to restart oil flows through the Strait of Hormuz.
S&P 500 contracts were slightly changed after the benchmark set back-to-back record highs. Brent traded near $99 per barrel, extending a 12% drop in the previous two sessions on growing optimism that a Middle East agreement is within approach. The Dollar is set for its worst week in a month. Global bonds continued to rise as inflationary pressures eased.
Equities have recovered from their war-related dips, with hope for a settlement to the conflict adding impetus to a rise fuelled by tech profits and high expectations for AI. Resuming supplies through Hormuz would help minimise economic risks associated with the war.
In Europe, the Stoxx 600 lost 0.3% as investors watched a flurry of corporate earnings. The UK’s FTSE 100 index fell 0.7%, dragged down by Shell’s decrease in buybacks. Centrica also slumped after announcing that retail earnings will likely be at the low end of its projection range.
Despite Trump’s warnings that he would soon slap new tariffs on automobiles and trucks, the EU failed to finalise a long-awaited US trade pact.
