Central Banks Dominate Markets Amid U.S.-Iran De-escalation

The Reserve Bank of Australia opted to hold rates at 4.35%, though policymakers signaled that persistent inflation could necessitate further hikes. Traders are now turning their attention to upcoming meetings from the Federal Reserve and the Bank of England, scrutinizing their rhetoric to gauge how a potential resolution to the Iran conflict might alter global interest rate trajectories. Despite President Donald Trump’s assertions regarding tanker departures from the Strait of Hormuz, vessel-tracking data shows no significant increase in traffic, keeping Brent crude prices above $80 per barrel.

Corporate activity remains robust, led by SpaceX, which surged 19% on Monday following its recent IPO. With over $1.16 billion in shares changing hands, the company is poised to surpass Amazon’s $2.7 trillion market capitalization. Meanwhile, Nvidia entered the debt markets with a $25 billion bond issuance, aiming to secure a liquid benchmark for its cost of credit rather than funding immediate capital expenditures. These shifts occur as G7 leaders convene in Evian-les-Bains to address AI development, economic imbalances, and the ongoing geopolitical fallout.