Global markets saw notable shifts on Thursday following remarks by U.S. President Donald Trump suggesting de-escalation in tensions with Iran, which eased investor anxiety and triggered sharp moves in commodities and equities. Oil prices fell more than 3 percent from recent highs as geopolitical risk premiums unwound, while gold eased from record levels amid improved risk sentiment.

Asian markets delivered a mixed performance: Japan’s Nikkei declined slightly even as Korea’s KOSPI hit fresh highs after the Bank of Korea’s decision to hold interest rates, illustrating regional variation in investor flows. The Japanese yen rebounded from 1.5-year lows against the U.S. dollar amid speculation about possible intervention. U.S. equity futures remained relatively flat as traders digested the complex interplay of geopolitical easing and sector rotation, particularly persistent weakness in tech stocks.

Equity markets in other regions were similarly reactive, with some European and U.S. benchmarks reflecting cautious optimism ahead of key earnings and economic data releases.

The drop in energy prices has implications for producer revenues and inflation expectations, potentially altering central bank deliberations in the near term.

Analysts note that deepening cooperation or détente in the Middle East could reshape commodity pricing dynamics if sustained, though uncertainties remain.

Investors will watch incoming macro data, including inflation and employment figures, for fresh cues on monetary policy direction and market risk appetite later this week.

Source: Reuters