Khaberni - Global stocks surged today after the United States and Iran reached a ceasefire agreement for two weeks, which gave the markets respite from the violent fluctuations fueled by the conflict in the Middle East.
The "MSCI" Index for Asia and the Pacific rose by 5.1%, recording its highest level in five weeks, as markets bet that the fall in oil prices would help curb inflation and boost economic growth.
U.S. stock index futures rose more than 2.7%, while European contracts jumped by 5.3%.
The dollar index, which emerged as a safe haven during the conflict, dropped by 1.15% to 97.7130 points, while gold in spot transactions rose by 2.8% to $4839.49 per ounce.
Hiro Yukio, the chief strategist at Sumitomo Mitsui Trust Asset Management in Tokyo, said: "For now, this represents relief for the markets, things have calmed down. But there is nothing to guarantee that things will go smoothly from now on, and investors should not be premature."
From his side, Matthew Hupt, a fund manager at Wilson Asset Management in Sydney said, "It's a good outcome considering the alternatives, as it shows a desire to accomplish something. It also shows promising signs that we avoided the worst-case scenario."
Some investors remain skeptical
Neil Neuman, head of strategy at Astris Advisory Japan, said: "The outlook depends on whether the truce will hold, and for now, I don't have much confidence in it. Thus, I consider this a very fragile relief. I recommend using the volatility to exit underperforming stocks and build strategic positions."
The main test for investors will be whether the flow of oil and gas through the Strait of Hormuz will remain uninterrupted".
Here are the major stock market movements:
S&P 500 futures rose by 2.7% (6:52 AM London time).
Nasdaq 100 futures rose by 3.3%.
MSCI Asia Pacific Index rose by 5.1%.
Japan's Topix Index rose by 3.4%.
Australia's S&P/ASX 200 rose by 2.6%.
Hong Kong's Hang Seng rose by 3.1%.
Shanghai Composite rose by 2.5%.
Currencies:
Dollar Index dropped by 1.15%.
Euro rose by 0.9% to 1.1703 dollars.
Japanese yen rose by 0.9% to 158.16 yen per dollar.
Offshore yuan rose by 0.5% to 6.8236 yuan per dollar.
British pound jumped by 1.2% to 1.3444 dollars.
Cryptocurrencies:
Bitcoin rose by 3.6% to 71,796.63 dollars.
Ethereum rose by 6.1% to 2,243.16 dollars.
