Key Developments
• US President Donald Trump announced that Iran and Israel have agreed on a “full and comprehensive ceasefire.”
• Iranian officials confirmed ongoing ceasefire negotiations, but no formal confirmation has yet been provided by Israel.
• The ceasefire is expected to take effect on Tuesday at midnight Eastern Time.
• The situation on the ground remains complex, with occasional reports of ongoing attacks in the region.

Equity Markets
• US stock futures opened higher.
• S&P 500 futures gained 0.6%, while Nasdaq futures rose 0.9%.
• A positive sentiment dominated Asia-Pacific markets.
• Japan’s Nikkei Index climbed 1.4%, Hong Kong’s Hang Seng Index advanced 1.7%,

Currency Markets
• The US dollar weakened.
• The dollar lost 0.3% against the Japanese yen.
• The euro appreciated by 0.2% against the dollar.
• Falling oil prices supported both the euro and yen, as Europe and Japan are major energy importers.

Additional Developments and Outlook
• Japan is accelerating tariff negotiations with the US, with the next high-level meeting expected as early as June 26.
• Fed Vice Chair Bowman indicated rate cuts could be approaching as risks to the labor market grow.
• Fed Chair Jerome Powell’s testimony before Congress later today will be closely watched.
• Market pricing suggests only a 22% probability of a Fed rate cut at the July 30 meeting.
• Investor risk appetite has improved, but remains cautiously optimistic.

What’s Next?
• While markets are rallying for now, it would be premature to interpret this as a lasting return to stability. Developments from both Iran and Israel, as well as the broader US Middle East policy, will continue to heavily influence sentiment. The sharp drop in oil prices may look positive in the short term, but even a small escalation could quickly reverse that trend.