Iranian state media has denied reports of U.S.-Iran talks in Islamabad, complicating the geopolitical landscape as Tehran ties negotiations to a ceasefire in Lebanon. This uncertainty is keeping investors cautious, despite a recent truce, with Asian equities rising but major assets remaining in tight trading ranges as they await clearer signals of de-escalation.

Market sentiment reflects this cautious optimism, with U.S. futures extending gains after a strong Wall Street performance. However, oil prices remain sticky, with Brent crude hovering near $96 per barrel amid ongoing supply concerns. The Bank of Japan is also warning of stagflation risks, while Japan’s wholesale inflation has surged, raising the stakes for potential interest rate adjustments.

Investors should remain vigilant as geopolitical tensions persist and economic indicators from Asia signal a complex environment. The interplay between Middle Eastern developments and central bank policies will be crucial for market direction in the coming weeks.

Source: xtb.com