Global Stock Markets Rise After US and Iran Reach Peace Deal
US stock futures rose on Sunday evening, kicking off a holiday-shortened trading week, after President Donald Trump announced that the United States and Iran had reached an agreement to end the war. Dow Jones Industrial Average futures rose 342 points, or 0.7%. S&P 500 futures rose 0.9%, while Nasdaq 100 futures jumped 1.4%.
Positive sentiment was also felt in the Asia-Pacific region at the start of trading on Monday (June 15). South Korea's Kospi index led the gains, rising more than 4% at the opening, while the Kosdaq rose 2.34%. In Japan, the Nikkei 225 rose 3.51% and the Topix rose 2.43%. Meanwhile, Australia's S&P/ASX 200 index added 1.49%. However, Hong Kong's Hang Seng futures were at 24,706, slightly lower than the index's last close of 24,718.10.
Trump stated via social media on Sunday night that the deal with Iran was "done." Pakistani Prime Minister Shehbaz Sharif also said that an official signing ceremony would take place on Friday in Switzerland. Trump also stated that he had authorized the reopening of the Strait of Hormuz, a vital route for global energy trade. This news immediately put pressure on oil prices, with US crude falling nearly 5% on Sunday.
The announcement came after a brief exchange of fire between Israel and Tehran-backed Hezbollah in Lebanon. This situation had previously raised uncertainty about whether a peace deal could be finalized on Sunday. However, the US stock market had already posted a positive week, with sentiment supported by SpaceX's historic IPO on Friday. SpaceX closed trading with a market capitalization above US$2 trillion after its shares rose more than 19%. Evan Schlossman, principal at SuRo Capital, assessed the success of SpaceX's IPO as a positive signal for investor interest in innovation and technology.
Looking ahead, investors will be closely monitoring a number of key economic data, including housing and retail sales data. The market will also be focused on the Federal Reserve's policy meeting. According to the CME's FedWatch Tool, Fed funds futures indicate a greater than 98% chance that the Fed will keep interest rates unchanged. Meanwhile, the US stock market will be closed on Friday in observance of Juneteenth. (asd)
Source: Newsmaker.id
