Stocks Mixed as Peace Talk Optimism Meets Wall Street Jitters

Global stocks delivered a split session Monday. Asian and European indexes climbed on optimism that Middle East peace talks could reduce regional tensions. Wall Street headed the other way, pulled lower by technology shares and renewed rate anxiety.

The pound slipped after UK Prime Minister Keir Starmer resigned, injecting political uncertainty into sterling. The dollar firmed against most peers, reclaiming ground lost in recent weeks. Traders described the pound move as positioning-driven rather than a reassessment of UK fundamentals.

Former Federal Reserve Chairman Alan Greenspan died at age 99. Markets paid little attention; his legacy of inflation targeting is widely seen as already priced into central-bank frameworks. Greenspan led the Fed from 1987 to 2006, a period that shaped modern monetary policy.

On the macro front, competing forces shaped the day. Middle East peace talks reduced the risk premium on oil, helping currencies of import-dependent economies. The tech selloff reflected lingering concern about valuations and the path of interest rates. Bond yields edged lower as traders sought safer assets.

The week ahead holds US job openings data and Federal Reserve minutes from the June meeting. Investors also have the Bank of England policy meeting on the calendar. For sterling, the key level to watch is 1.2700, with a break below that opening a path to early May lows.