New york: Global markets traded cautiously Monday amid optimism surrounding potential US-Iran talks, as well as ongoing USMCA negotiations. Investors are also keenly observing geopolitical developments, oil prices, and key economic data expected later this week.
According to Anadolu Agency, optimism among investors improved last week following reports of the United States and Iran moving closer to an agreement aimed at extending the current ceasefire and initiating negotiations over Iran’s nuclear program. An Axios report highlighted that American and Iranian negotiators have agreed on a 60-day framework document to extend the ceasefire and begin talks on Tehran’s nuclear activities, though US President Donald Trump has not yet given final approval.
Under this proposed framework, the Strait of Hormuz would reopen, and restrictions on maritime traffic involving Iranian ports would be eased. However, US Vice President JD Vance cautioned that although both sides are nearing an agreement, some differences persi
st regarding future negotiations on Iran’s nuclear program.
In parallel developments, the first round of bilateral talks reviewing the US-Mexico-Canada Agreement (USMCA) concluded, as reported by the Office of the US Trade Representative. Negotiators tackled priority issues such as automotive rules of origin, steel and aluminum trade, and economic security.
Meanwhile, several global organizations, including the International Energy Agency (IEA), the International Monetary Fund (IMF), the World Bank, and the World Trade Organization (WTO), have issued warnings that the Middle East conflict continues to pose risks to the global economy, energy markets, and trade flows. These organizations emphasized that if maritime shipping traffic remains disrupted, the rapidly declining global oil inventories could pose greater risks for fuel security, market stability, and economic resilience.
Investors are caught between optimism over a potential diplomatic breakthrough and concerns over the challenges of achieving a co
mprehensive agreement. Focus is also shifting to the upcoming US nonfarm payrolls data, expected to provide fresh insights into labor market conditions and the impact of artificial intelligence-driven changes across industries.
On Monday, Brent crude oil rose 1.3% to $92.6 per barrel amid uncertainty over the reopening of the Strait of Hormuz. The yield on the US 10-year Treasury note increased by three basis points to 4.47%, reflecting concerns over sustained inflationary pressures due to higher energy prices. The US Dollar Index gained 0.1% to 99, while gold prices declined by 0.7% to $1,451 per ounce.
US equities received support from hopes that a potential agreement with Iran could ease regional tensions. Technology stocks also boosted sentiment after Dell Technologies reported strong revenue growth and raised its full-year revenue forecast. The company’s shares surged 33% on May 29.
On May 29, the Dow Jones Industrial Average gained 0.72%, the S and P 500 rose 0.22%, and the Nasdaq Composite advanced
0.21%. US markets started Monday’s session on a positive note.
European markets showed mixed performance amid ongoing geopolitical developments and fresh economic data. France’s economy contracted by 0.1% quarter-on-quarter in the first quarter, while Germany’s Consumer Price Index fell 0.2% month-on-month in May, contrary to expectations. Annual inflation in Germany slowed to 2.6% from 2.9% in April. Germany’s Finance Ministry announced that the six largest economies in the European Union had agreed on a common position to deepen integration and strengthen cooperation in capital markets.
On May 29, Germany’s DAX 40 rose 0.05%, Italy’s FTSE MIB 30 gained 0.42%, while Britain’s FTSE 100 declined 0.16% and France’s CAC 40 fell 0.7%. European markets opened Monday on a lower note.
Positive sentiment from Wall Street extended into Asia, with reports indicating that Nvidia founder and CEO Jensen Huang will meet leading technology executives in South Korea this week. This news spurred gains in the country’s stoc
k market, with shares of LG soaring nearly 30%.
However, Chinese equities faced pressure as the country’s manufacturing Purchasing Managers’ Index (PMI) declined to 51.8 in May from 52.2 in April. South Korea’s Kospi Index surged 4.5% to a record high of 8,874.16 points, while Hong Kong’s Hang Seng Index gained 0.9%, and Japan’s Nikkei 225 rose 0.8% to an all-time high of 67,231.28 points. China’s Shanghai Composite Index slipped 0.1%.