Global stocks surge and oil slides on Iran peace deal report

By Harry Robertson

LONDON, May 6 (Reuters) - Stocks leapt and lipid prices dropped connected Wednesday aft a study said the White House believed it was closing successful connected a ‌memorandum to extremity the warfare with Iran, portion momentum successful AI-driven trades accelerated.

The study ‌by quality outlet Axios said the U.S. expected Iranian responses connected respective cardinal points successful the adjacent 48 hours. A ​Pakistani root progressive successful the bid efforts confirmed the study to Reuters connected Wednesday.

Brent crude, the planetary benchmark, dropped 7.5% to $101.70 per barrel.

The Iran warfare has each but closed the Strait of Hormuz, done which 20% of planetary vigor usually flows, truthful a bid woody could alleviate immoderate of the symptom ‌for lipid and state markets.

Europe's STOXX ⁠600 scale extended its gains and was past up 2.1% aft climbing 0.7% a time earlier. MSCI's All-Country World Index climbed 0.9% to a caller record.

Futures ⁠for the U.S. S&P 500 roseate 0.7%, a time aft the scale rallied 0.8% to deed its latest grounds high, driven by beardown institution net and excitement astir artificial intelligence.

"It seems equity investors are inactive ​looking ​to enactment wealth to enactment and are jumping connected ​positive-sounding quality from the Gulf," said Chris ‌Turner, caput of planetary markets astatine ING, responding to an earlier emergence successful shares aft U.S. President Donald Trump touted advancement successful bid talks.

The U.S. dollar, which has been a harmless haven during the Iran war, dropped 0.5% against its large peers, reflecting capitalist hopes astir a imaginable deal.

Meanwhile, yields connected authorities bonds fell on with lipid prices arsenic traders dialled down their bets connected ‌central slope complaint hikes.

The 10-year U.S. Treasury output fell 7 ​basis points to 4.35%.

The broadest scale of Asia-Pacific shares ​outside Japan jumped 3.2%. The surge was led ​by a 6.5% complaint for South Korea's KOSPI, which reopened aft a holiday.

Samsung ‌Electronics jumped 14%, topping a $1 trillion marketplace ​value and overtaking Berkshire Hathaway.

"Due ​to the capex walk we are seeing from (AI) hyperscalers successful the U.S., the net maturation trajectory for sectors specified arsenic semiconductors, tech hardware, industrials and materials successful Asia exceeds ​anything I person seen successful a ‌long time," said Rushil Khanna, caput of equity investments for Asia astatine Ostrum, an ​affiliate of Natixis Investment Managers.

(Reporting by Harry Robertson successful London and Gregor Stuart Hunter ​in Singapore; Editing by Thomas Derpinghaus, Kirsten Donovan)