Key facts
- A U.S.-Iran memorandum of understanding has been signed, leading to oil prices falling below $80 and a rally in global stocks and bonds.
- Key U.S. inflation data (PCE) and corporate earnings from Micron and FedEx are scheduled for release this week.
- Australia will release crucial inflation and labor data, with the RBA having recently held rates steady.
- Colombia's presidential election runoff presents distinct economic policy choices.
- London is hosting a major climate event focused on financing the low-carbon transition amidst energy security concerns.
Global financial markets are poised for a significant week as a tentative peace deal between the U.S. and Iran has eased geopolitical tensions, leading to a drop in oil prices and a rally in stocks and bonds. However, the durability of this agreement remains a key concern, with potential flashpoints in Lebanon and doubts over a final accord. Investors will also closely monitor crucial U.S. inflation data, specifically the personal consumption expenditures (PCE) price index, following the Federal Reserve's recent hawkish stance. Quarterly earnings from semiconductor firm Micron Technology and economic bellwether FedEx are also on the agenda. In Australia, key inflation and labor data will be released, which could influence the Reserve Bank of Australia's future monetary policy decisions. Colombians are set to vote in a presidential runoff election that presents divergent economic paths. Meanwhile, London is hosting a major climate week, focusing on mobilizing private capital for the low-carbon transition amidst ongoing energy security concerns.