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24.06.2025 02:00 PM
Global equity markets ended Monday on a high note, shaking off concerns over growing tensions in the Middle East. Investors appeared unfazed by Iran's retaliatory strikes on US military facilities in Qatar, focusing instead on broader market momentum. Meanwhile, oil prices plummeted following recent highs not seen in months.
Tehran's decision to launch airstrikes on American bases in Qatar sent ripples through geopolitical circles, but the market response was surprisingly calm. According to a senior regional source, Iran had informed the United States through diplomatic channels ahead of the attack — a move interpreted as a bid to de-escalate the situation rather than provoke further conflict.
Oil benchmarks, which had recently surged to five-month highs, reversed direction sharply on Monday.
Brent crude dropped by 7.2% to close at 71.48 dollars per barrel, while WTI fell by the same margin to 68.51 dollars.
Despite geopolitical uncertainty, Wall Street closed in the green:
In Europe:
Across Asian markets:
The broader MSCI World Index gained 0.49%, reflecting a more optimistic global investment climate.
Federal Reserve Vice Chair for Supervision Michelle Bowman suggested on Monday that the US central bank may be approaching a point where lowering interest rates becomes appropriate. Her growing concern about labor market vulnerabilities appears to be overtaking previous fears about persistent inflation driven by high import tariffs.
Her comments prompted a swift reaction in financial markets, especially among currency traders.
Following Bowman's remarks, the US dollar posted mixed results. It rose slightly against the Japanese yen by 0.08 percent to reach 146.15 but declined by 0.68 percent versus the Swiss franc, settling at 0.81260. The euro recovered from earlier losses and gained 0.49 percent to reach 1.157675 dollars.
The dollar index, which tracks the greenback against a basket of major currencies, slipped by 0.5 percent to 98.39.
Precious metals saw upward momentum as well. Spot gold rose by 0.23 percent to 3375.71 dollars per ounce, while US gold futures advanced by 0.3 percent to 3395 dollars.
Investor sentiment soared across European markets on Tuesday after former US President Donald Trump announced a ceasefire agreement between Iran and Israel. The news was greeted with relief by traders, boosting appetite for risk across global exchanges.
The STOXX 600, a broad gauge of European equities, rose by 1.4 percent to 542.6 points. Germany's DAX index led the gains with an increase of nearly 2 percent.
Israeli Prime Minister Benjamin Netanyahu confirmed that his government accepted the US-brokered ceasefire proposal.
Oil prices fell to their lowest levels in two weeks amid a noticeable decline in supply-related concerns. Meanwhile, investor appetite for riskier assets pushed gold prices down to nearly two-week lows, signaling a broader shift in market sentiment.
Sectors responded differently to the shifting market dynamics. Energy shares declined by 3.5 percent, reflecting the weakness in oil prices. In contrast, travel and leisure stocks rallied, rising by 4.3 percent, supported by growing investor optimism about global economic resilience and consumer demand.
Shares of UK-based pharmaceutical giant AstraZeneca rose by 1.3 percent after the company, alongside its Japanese partner Daiichi Sankyo, received approval from US regulators for their precision lung cancer treatment, Datroway. The approval is seen as a significant milestone in the company's oncology pipelines.
Investor attention is now focused on upcoming remarks by Federal Reserve Chair Jerome Powell before the US Congress. His testimony is expected to provide crucial clues about the central bank's policy direction and could influence financial markets in the short term.
