Equities See Risk-On Shift as Iran Peace Hopes Resurface: Danske Bank

Danske Bank says equity markets have shifted to a risk-on stance as renewed diplomatic signals around Iran raise the probability of de‑escalation. Investors are rotating out of safe havens into cyclical and growth stocks, with technology and consumer discretionary leading recent outperformance while gold and government bonds have pulled back modestly. The bank highlights the move could broaden the S&P 500 rally beyond mega-cap tech if talks progress, and notes improving European data and moderating U.S. inflation are supporting risk assets. Danske cautions the rotation is contingent on concrete diplomatic outcomes and oil-price developments, recommending balanced exposure to quality cyclicals rather than speculative positions given lingering geopolitical uncertainty.