Ceasefire triggers risk rally: Stock markets cheered signs of a potential resolution to the Iran-Israel conflict, with the S&P 500 ending the day up 1% yesterday. Regional markets, which closed earlier in the day before news of an Iran-Israel ceasefire broke out, also settled in the black.

Earlier this week, the USD had staged a modest rally, though it weakened yesterday, falling 0.2% against the JPY, while the EUR and AUD strengthened. The Bloomberg USD Spot Index — which weighs the USD against a basket of developed and emerging market currencies — fell 0.2%.

The earlier rush to safe havens still held when it came to US Treasuries, which rallied after Iranian state media reported a missile strike on a US air base in Qatar, Bloomberg reports. Yields on 10-year Treasuries fell to their lowest levels in a month, while the five-year yield fell to 3.86% on hopes for a sooner-than-expected interest rate cut from the US Federal Reserve, after Fed Governor Michelle Bowman said she would support a July rate cut if inflation continued to cool. Gold also settled up 0.3%.

The dip in yields have also spurred more bond sales, with companies in the US and Europe looking to lock in more affordable rates amid uncertainty over the outlook for yields down the line. The Royal Bank of Canada sold EUR 750 mn in green bonds, while BNP Paribas is looking to sell a USD-denominated AT1 bond, and Australia’s OMV sold a EUR 750 mn hybrid bond.

MARKETS THIS MORNING-

Asian markets also gained on the back of news of the ceasefire, with South Korea’s Kospi up 2.1%, Japan’s Nikkei rising 1.3%, and Hong Kong’s Hang Seng up 1.4%. China’s CSI 300 was flat. Over on Wall Street, futures rose on the news, with S&P 500 futures up 0.4% and Nasdaq futures rising 0.6%.

ADX

9,558

+0.5% (YTD: +1.5%)

DFM

5,411

+1.1% (YTD: +4.9%)

Nasdaq Dubai UAE20

4,387

+1.2% (YTD: +5.3%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

4.2% o/n

4.3% 1 yr

TASI

10,710

+1.3% (YTD: -11.1%)

EGX30

31,419

+1.2% (YTD: +5.6%)

S&P 500

6025

+1.0% (YTD: +2.4%)

FTSE 100

8758

-0.2% (YTD: +7.2%)

Euro Stoxx 50

5222

-0.2% (YTD: +6.7%)

Brent crude

USD 70.58

-8.4%

Natural gas (Nymex)

USD 3.70

-3.9%

Gold

USD 3395.00

+0.3%

BTC

USD 103,765.6

+4.7% (YTD: +11.0%)

Chimera JP Morgan UAE Bond UCITS ETF

AED 3.66

+2.8% (YTD: +2.6%)

S&P MENA Bond & Sukuk

144.12

-0.1% (YTD: +3.0%)

VIX (Volatility Index)

19.83

-3.8% (YTD: +14.3%)

THE CLOSING BELL-

The DFM rose 1.1% yesterday on turnover of AED 787.5 mn. The index is up 4.9% YTD.

In the green: Ekttitab Holding Company (+14.7%), National Cement Company (+11.1%) and Ithmaar Holding (+6.7%).

In the red: Agility The Public Warehousing Company (-9.0%), Dubai National Ins. and Reins. (-8.7%) and Emirates Investment Bank (-6.7%).

Over on the ADX, the index rose 0.5% on turnover of AED 840.8 mn. Meanwhile, Nasdaq Dubai was up 1.2%.

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