DATA & FIGURES
The US-Iran deal has led to a significant increase in global markets, with the MSCI Asia Pacific Index climbing as much as 3.2%, on track for its biggest two-day rally since March 2022. Japan's Nikkei 225 soared to a record high, while South Korea's Kospi and the Philippine index gained more than 5%.
THE SCENARIO
The US-Iran deal has eased concerns over energy-supply disruptions that have driven up oil prices. The agreement is expected to lower inflationary pressures ahead of interest rate decisions this week from the Federal Reserve and other central banks.
DIRECT QUOTE
"Risk appetite is back on, but the issue is to know whether the Strait fully reopens" — Christopher Dembik, senior investment manager at Pictet Asset Management
BBN INSIGHT
The US-Iran deal is a significant development that has the potential to ease inflationary pressures and reinforce expectations for lower interest rates. However, the deal is not a permanent solution, and a significant risk premium will likely be priced into markets.
MARKET REACTION
The market reaction to the US-Iran deal has been significant, with stocks and bonds rallying, while oil prices have tumbled.