Global stocks surge as oil prices ease below $90 on peace talk hopes

European and American equity futures climbed higher as softer oil prices bolstered investor confidence across global markets. The decline in crude oil—a key indicator of economic sentiment—signalled easing geopolitical tensions, particularly following indications of possible dialogue between the United States and Iran. Lower energy prices typically support corporate earnings and consumer spending, providing a tailwind for equity valuations.

Markets are closely watching forthcoming US inflation figures, which are expected to provide critical insights into the trajectory of monetary policy. The data could significantly influence expectations regarding the Federal Reserve's interest rate decisions in coming months. Investors have been cautious about inflation trends and their implications for interest rates, which affect equity valuations and borrowing costs across the globe.

The combination of receding oil prices and hopes for geopolitical de-escalation has created a more favourable backdrop for risk assets. Energy sector weakness from lower crude prices is being offset by broader market gains as investors reassess the economic outlook. Regional markets, including those in South and Southeast Asia, remain sensitive to global equity momentum and commodity price movements, making this rally significant for investors across the region.