The US stock indices were closed yesterday due to a banking holiday.

In Europe, by the end of the day, Germany’s DAX (DE40) rose by 2.01%, France’s CAC 40 (FR40) closed up 1.76%, Spain’s IBEX 35 (ES35) gained 2.24%, and the UK’s FTSE 100 (UK100) was closed due to a holiday. Frankfurt’s DAX 40 updated its highest levels since January of this year, making the German stock market the undisputed leader in the European region. The main driver behind such a powerful rally was the positive progress in negotiations between the United States and Iran. Global financial markets enthusiastically welcomed the news about the preparation of a draft peace agreement that could end the ten‑week escalation and restore stability in the Strait of Hormuz. For Germany’s energy‑import‑dependent economy, this became a strong signal of declining future inflation risks and lower business operating costs.

Prices for US WTI crude oil rose to 92 dollars per barrel, partially recovering the previous days’ decline. The reason for the local rebound was new US military operations in southern Iran, which reminded investors of the persistent risks of negotiation failure and kept the market under strong tension. The latest escalation occurred after the US carried out preemptive strikes on Iranian missile launchers and mine‑laying vessels near the Strait of Hormuz, calling it an act of protection of American forces. At the same time, Donald Trump attempted to calm the markets, stating that diplomatic dialogue is progressing successfully, although he warned Tehran of inevitable new heavy strikes in case of a breakdown in contacts. At the moment, the parties are discussing a two‑month temporary ceasefire under which the US would lift the naval blockade, and Iran would fully reopen the Strait of Hormuz to commercial shipping.

In Asia on Monday, Japan’s Nikkei 225 (JP225) rose by 2.87%, China’s FTSE China A50 closed higher by 2.24%, Hong Kong’s Hang Seng (HK50) was closed yesterday, and Australia’s ASX 200 (AU200) gained 0.40%.

The New Zealand dollar fell to 0.584 USD, fully erasing the modest gains of the previous session. The sharp reversal of the “kiwi” occurred after US forces carried out targeted strikes on missile launchers and mine boats in southern Iran near the Strait of Hormuz, which the Pentagon described as an act of self‑defense. This unexpected escalation erased the optimism of recent days regarding the imminent signing of a peace agreement between Washington and Tehran, triggering an investor flight from risk assets into the safe‑haven US dollar.

The currency campaign of the People’s Bank of China aimed at controlled strengthening of the national currency continues confidently. In recent days, the US dollar has shifted to consolidation against the yuan, but last week it closed at its lowest level since May 14, when a three‑year low near 6.7815 yuan per dollar was recorded. Current market sentiment shows that the average outlook of analysts surveyed by Bloomberg, expecting 6.75 yuan per dollar by year‑end, appears too conservative. The observed trend opens the potential for a more aggressive appreciation of the Chinese currency toward 6.60 yuan per dollar.

Singapore’s annual inflation rate in April 2026 stood at 1.8%, maintaining the pace of the previous month and surprising the market, which expected an acceleration to 2%. Nevertheless, this figure remains at its highest level since September 2024, reflecting the prolonged geopolitical crisis in the Middle East, which continues to pressure global supply chains and energy costs.