Markets show modest gains amid calmer geopolitical tone, with focus shifting to the ECB’s expected rate guidance.
European equities rose slightly in a cautious session as US-Iran tensions showed signs of easing, though Iran maintained the Strait of Hormuz remains closed. WTI crude fell 0.7% to $89.36, while gold and Bitcoin posted modest gains, up 0.2% to $4,083 and 2.2% to $63,129, respectively.
US futures pointed higher, with the S&P 500 up 0.7% and Nasdaq futures gaining 1.1%, recovering from the prior session’s losses. The US 10-year yield dipped 1.9 bps to 4.52%, while the USD and CHF led currency moves, with the CAD lagging.
Attention now turns to the ECB, where markets expect a symbolic rate hike but prioritize forward guidance over policy shifts. The central bank’s messaging will shape near-term sentiment as geopolitical risks linger in the background.