Financial markets face a weekend of uncertainty as they wait for U.S. President Donald Trump to make a crucial decision on a reported agreement with Iran, according to sources who spoke with Reuters.
The potential deal would extend the current ceasefire between the two nations and reopen the Strait of Hormuz, but Trump’s final approval remains the last hurdle before implementation.
Asian markets showed little movement early in the trading day. Currency values remained stable while bond markets maintained their weekly gains, as traders believe rising fuel costs may pressure Trump to approve the agreement.
The push for Middle Eastern stability is gaining momentum as global borrowing costs climb higher. Financial experts worry that increased interest rates could worsen economic pressures and hurt investment markets.
European nations will release new inflation data on Friday, and while economists predict only minor increases, the numbers will likely strengthen expectations for interest rate increases in June.
Japan’s inflation remained under the country’s 2% goal for the fourth consecutive month, according to Friday’s data from Tokyo. However, improving manufacturing production continues to support the possibility of a Japanese rate increase next month.
Currency traders are watching the yen carefully as it hovers near 160 per dollar, a threshold that has made investors cautious about challenging government intervention to protect the currency.
Technology stocks continued their artificial intelligence-driven rally. Dell’s stock price jumped 39% in extended trading after the company increased its AI server revenue projections. In Hong Kong, computer manufacturer Lenovo has seen dramatic gains, rising 18% and posting a weekly increase of nearly 50% – its biggest weekly jump since 1997.
Friday’s key market influences include inflation reports from Germany, France, and Italy, Canadian economic growth data, and continued developments in U.S.-Iran negotiations.
