US futures are trading higher, while European markets opened with strong gains. The US dollar has weakened noticeably, with most Asian currencies strengthening except the yen. Treasury yields are up at the short end but down at the long end, and sovereign yields in Asia have declined. Crude oil prices are lower, although Brent and WTI have recovered somewhat from their lows. Precious metals are showing solid strength, base metals remain supported, and cryptocurrencies are trading higher as well. The US and Iran have confirmed that a deal to end their conflict has been reached, with a signing ceremony scheduled for 19-Jun in Switzerland. The Strait of Hormuz will reopen once the agreement is signed, although President Trump noted that time will be needed to clear mines. Trump also stated that shipping will resume without tolls and that the US will immediately end its naval blockade. However, it remains unclear how the reopening of the Strait will align with Iran’s ongoing assertion of sovereignty and its claimed right to collect fees.

Companies Mentioned: Woodside Energy Group, Exxon Mobil, Uniper, ByteDance, Shanghai Iluvatar CoreX Semiconductor