Iran-Israel peace – “a sustained rally in equities back on the table”

Equity markets soar off the back of ceasefire news

 
Chris Beauchamp, Chief Market Analyst at IG, said:

 
“Markets have cheered the news of a ceasefire in the Middle East, rallying hard as the prospect of a conflict between the US and Iran recedes into the background. The Israeli attack on Iran came as a surprise, as did the US strike at the weekend, but the pause in the fighting removes a key worry for investors and puts a sustained rally in equities back on the table.”

“There are still hurdles to navigate, most notably the 8 July deadline for trade deals, but for the moment the market thinks that there will be some kind of fresh extension. Slumping oil prices have negated some inflation fears for now, and with two Fed governors calling for rate cuts the overall tone continues to be supportive for risk assets.”