Markets Surge on Trade Optimism and Geopolitical Calm

Hello traders, and welcome to Monday’s trading session.

We begin the new week on a decisively positive note as market sentiment turns risk-on following key geopolitical and trade-related developments over the weekend. The two main drivers behind today’s optimism are progress in the US-China trade relationship and a fragile but encouraging ceasefire between India and Pakistan. While details on the US-China deal remain limited, the mere confirmation of ongoing dialogue and resolution is enough to spark a strong rally across global assets.

Indices React Positively
Equity markets are off to a powerful start. Futures opened with a significant bullish gap, and major indices are accelerating higher. US indices such as the S&P 500 and NASDAQ are gaining over 3% in early European trading, reflecting investor enthusiasm. European indices are also following this trend, with major bourses climbing steadily since the open.

Currency Market Reflects Risk-On Mood
On the forex side, we see a classic risk-on configuration. Commodity-linked currencies such as the Australian and New Zealand dollars are advancing sharply, while traditional safe havens like the Japanese yen and Swiss franc are under pressure. The American dollar is also strengthening noticeably at the start of the European session, gaining traction across multiple pairs as capital flows rotate into higher-yielding assets.

Commodities See Divergence
The commodities market is showing mixed but telling signals. Oil continues to push higher, extending the bullish momentum seen at the end of last week. This rise reflects expectations of stronger global demand amid easing trade tensions. Gold, on the other hand, is sharply lower this morning—a textbook reaction in a risk-on environment as investors pull back from safe-haven assets. Silver is also under pressure.

Calendar Quiet, Eyes on Sentiment
Today’s macroeconomic calendar is relatively empty, which gives the market room to digest and react fully to the weekend headlines. The lack of scheduled economic data means that today’s price action will likely be driven more by sentiment and positioning than by fundamentals. That said, the strength of the moves suggests conviction behind the risk-on tone.

In Summary
We’re entering the final stretch of May with markets firing on all cylinders. US-China trade progress  and a de-escalation in South Asia are enough to trigger strong buying activity across equities, commodity currencies, and oil, while safe havens like gold, yen, and franc are being rotated out of. With little to distract from these headlines today, traders should monitor continuation momentum and watch closely for any updates that might add detail—or cast doubt—on the weekend’s developments.Source: https://www.axiory.com/analytics/market-news/markets-surge-on-trade-optimism-and-geopolitical-c