US and Iran Hopeful for 'No Nuclear Weapons' Deal, Oil Steady at $101 Amid Optimism

Optimism for a peace deal between the US and Iran, including a 'no nuclear weapons' agreement, led Asian stocks to record highs and kept oil prices steady at $101 a barrel. China advised banks to halt new loans to US-sanctioned refineries, while UBS considers acquisitions in the US. Rheinmetall reported increased Q1 sales.

Thu May 07 2026

Global Market Trends Amid Hopes for Middle East Peace

Global markets are showing optimism as hopes for a peace deal between the US and Iran strengthen, with Asian stocks hitting record highs. Brent crude is maintaining stability at around $101 a barrel, and gold prices have also risen above $4,700 an ounce. This market sentiment is attributed to expectations of reduced Federal Reserve interest rate hikes and de-escalation of geopolitical tensions in the Middle East.

China's Advice on Sanctioned Refineries and Corporate News

According to Bloomberg reports, China's financial regulators have advised major domestic banks to temporarily suspend new loans to five refineries sanctioned by the US. This move comes just days after previous guidance to disregard US sanctions. Meanwhile, UBS CEO Sergio Ermotti stated that the bank is considering acquisitions to expand its presence in the Americas, emphasizing that a deal is not necessary but remains an option. Additionally, German defense company Rheinmetall reported a 7.7% increase in first-quarter sales, reaching 1.94 billion euros, with UBS analysts recommending buying the stock.

Key Economic Data and Corporate Earnings Ahead

Today's economic calendar includes the opening of polls for UK local elections at 7:00 a.m. London time, alongside the release of German factory orders data. At 8:30 a.m., both the Swedish Riksbank and Norges Bank are expected to announce their interest rate decisions. On the corporate front, Maersk is set to report earnings, and Rheinmetall's CEO Armin Papperger and Pandora's CEO Alexander Lacik will also hold interviews during the opening trade.