Global markets mixed as peace hopes rise, AI earnings reassure

Global markets saw risk appetite recover somewhat as expectations of a lasting peace in the Middle East and positive AI earnings eased concerns, while all eyes turned to the US Personal Consumption Expenditures (PCE) index and growth data due Thursday. The absence of negative developments and normalising tanker traffic through the Strait of Hormuz supported expectations that US‑Iran talks could yield lasting peace, easing oil supply concerns. Brent crude fell 0.6% to $72.9 per barrel.

AI and tech boosts

Micron Technology’s better‑than‑expected earnings — quarterly revenue of $41.46 billion — eased concerns over high AI valuations and cash flow constraints. The firm’s shares rose about 13% in after‑hours trading, providing relief to markets. However, investors remain cautious about the sustainability of AI demand. Analysts noted that US PCE and growth data will provide insight into inflation’s future trajectory and test whether the economy remains strong. The 10‑Year Treasury yield eased to 4.4%, while gold dipped below $4,000 per ounce for the first time since November 2025.

Regional and European markets

Asian markets traded positively, with South Korea’s Kospi surging 6% and Japan’s Nikkei 225 rising 4.5% on tech optimism. European markets were mixed, with Germany’s business sentiment rising for a second consecutive month but growth forecast revisions weighing on sentiment. NATO chief Mark Rutte warned that Iran’s nuclear access would threaten global security.