Iran Peace Talks Send Stocks Soaring, Crude Prices Plummet

Market optimism surrounding potential peace talks between the US and Iran has sent stocks soaring, while crude oil prices have taken a hit. The price of Brent crude futures fell by over 5% to $83.52 per barrel after US President Donald Trump announced that talks with Iran would take place on Monday.

European shares rose 0.4% to start August on a firm note, with the German DAX notching an intra-day record and rising 1.4%. The yen firmed to a three-month high after the US and Japan confirmed joint intervention to support it.

According to Bruno Schneller, managing partner at Erlen Capital Management, 'For equity markets, the fundamental picture remains encouraging.' He noted that earnings have generally held up well, with 86% of firms beating earnings expectations. However, Asian stocks struggled as the new month began, with Japan's Nikkei closing 1% lower and South Korea's KOSPI sliding more than 5%.