Market Optimism Soars Amid Trade Easing and Fed Rate Speculations

Asian shares reached a three-year high, spurred by a ceasefire between Israel and Iran, and easing China-U.S. trade tensions. Expectations for Fed rate cuts, influenced by weak U.S. economic data and potential leadership changes, have led to a dollar slump. Core PCE price index data is awaited for market impact.

In a positive start to the weekend, Asian stocks surged to their highest level in over three years, and European markets seemed poised to join the rally. Investors welcomed a fragile ceasefire between Israel and Iran and signs of easing tensions in U.S.-China trade, raising m...ger rate cuts this year.

On the geopolitical and economic front, the U.S. announced an agreement with China regarding the swift shipment of rare earths. U.S. Treasury Secretary Scott Bessent urged Congress to reconsider a "retaliatory tax" against foreign investors,...release of the core PCE price index in the U.S., which could lend further clues to the Federal Reserve's stance on interest rates.

The dollar, meanwhile, faced a downward trend, nearing a multi-year low and posting significant year-to-date losses. Investors are... Jerome Powell might be replaced by someone more dovish. This uncertainty coupled with Powell's potential replacement adds pressure on currency markets.

(With inputs from agencies.)