Stocks Bounce Back as Middle East Tensions Ease

Global stock markets rebounded on Monday after a pause in Middle East fighting sent oil prices plummeting. The easing of tensions led to a relief rally across the globe, with Brent crude dropping 6.3% to $90.70 a barrel and US crude falling 5.7% to $84.12.

The lull in hostilities, which saw Iran halt its own attacks as long as the United States did the same, also eased inflation worries ahead of a packed week of central bank meetings and earnings reports. This has boosted investor sentiment, with Europe's STOXX 600 climbing nearly 0.5% to its highest level since July 7.

Economically sensitive retail and travel stocks rallied more than 2%, but a drop in oil stocks weighed on the broader market. The S&P 500 futures rose 0.9%, while Nasdaq futures jumped 1.5%. The MSCI's broadest index of Asia-Pacific shares outside Japan also rose 0.3%.

The euro edged up 0.23% to $1.1395, and most major currencies advanced against the dollar as traders slightly pared back the probability of rate hikes from the Federal Reserve this week. The dollar dipped 0.2% against the yen to 163.53.