Peace Hopes Lift Sentiment into Busy Week

Peace hopes around Iran and resilient corporate earnings have lifted risk sentiment, sending Asian equities (including the Nikkei) to fresh highs and pushing US futures higher. Energy prices remain a key variable—US crude near $98.60/bbl and Brent around $100/bbl—keeping pressure on margins (P&G estimated ~$1bn hit at $100 Brent). Softer economic data and dovish policy narratives have pushed US short-term yields lower, supporting the S&P 500, while the dollar has weakened (EUR/USD above its 200-day MA; USD/JPY approaching 160). Investors are rotating into tech—benefiting from big AI investments—while a heavy US and European earnings calendar (about 180 S&P 500 companies this week) will guide near-term market direction. Central bank meetings add event risk, but most are expected to hold policy steady.