US equity futures are modestly higher, Asian markets are mixed while European equities are also mixed. Markets remain focused on the implications of the hawkish Fed stance, with rate hike expectations now pulled forward and yields rising sharply at the short end, weighing on equity sentiment. However, risk appetite is being supported by confidence around a formal US-Iran agreement, with the signed MoU reinforcing expectations for a reopening of the Strait of Hormuz and easing geopolitical risk. The combination of tighter financial conditions and improved geopolitical outlook is driving a more balanced but still cautious market tone, with positioning and sector rotation continuing to play a key role in near-term price action.

Companies Mentioned: Apple, Microsoft, Paramount Skydance