Overnight on Wall Street, stocks and bonds rallied on optimism over the deal. The S&P 500 jumped 1.7 per cent, and the Nasdaq Composite surged 3.1 per cent, while the Dow Jones Industrial Average and the STOXX 600 both closed at record highs.
Beyond geopolitics, traders are awaiting several major central bank decisions, including the Bank of Japan, which is set to raise interest rates to a 31-year high on Tuesday.
Deputy Governor Shinichi Uchida will hold a press briefing after the meeting, which Governor Kazuo Ueda will miss because he is undergoing medical treatment.
“We do not anticipate any major changes to the Bank’s assessment of current conditions,” analysts from Mitsubishi UFJ wrote in a research note.
“We expect Deputy Governor Uchida’s press conference, including the rationale he presents for the rate-hike decision, will be based largely on Governor Ueda’s Jun 3 speech,” the note added. “Mr Uchida is also likely to follow the governor’s remarks when discussing future policy decisions.”
The Reserve Bank of Australia will pause its tightening cycle when it meets later, according to a Reuters poll of economists.
The US dollar index, which measures the greenback’s strength against a basket of six currencies, held steady at 99.66, firmly within the tight trading channel in which it has sat all week.
The yield on the US 10-year Treasury bond was up 0.8 basis points at 4.475 per cent. Gold was up 0.2 per cent at US$4,313.87.
In cryptocurrency markets, bitcoin was down 0.3 per cent at US$66,245.97, while ether slumped 1.2 per cent to US$1,793.70.
