Stocks shake off Iran jitters as AI rules supreme; oil climbs 

By Wayne Cole and Amanda Cooper

SYDNEY/LONDON, June 1 (Reuters) - Global stocks traded astatine grounds highs connected Monday arsenic the AI roar continued to thrust demand, offsetting quality of caller attacks successful the Gulf that challenged optimism astir a reopening of the Strait of Hormuz ‌and lifted lipid prices.

While negotiators from Washington and Tehran are seemingly moving to hammer retired a deal, U.S. President Donald Trump had been ‌silent connected their advancement until posting that everyone should "just beryllium backmost and relax".

Speaking connected Saturday, Defense Secretary Pete Hegseth said the U.S. was acceptable to restart attacks connected Iran if a woody ​could not beryllium reached. On Monday, quality emerged that U.S. forces struck Iranian targets implicit the play and Tehran had deed back, portion Kuwaiti defences were reportedly intercepting rocket and drone strikes.

Brent crude futures roseate astir 3% to $94 a barrel, which successful crook prompted a selloff successful authorities bonds, which person been wounded by increasing expectations for involvement rates to emergence to combat immoderate spikes successful inflation.

The MSCI All-World scale was up 0.13% to commercialized astir grounds highs, arsenic markets from Tokyo to ‌Seoul traded astatine oregon adjacent all-time peaks, underpinned by avid ⁠demand for thing AI-related.

"Even though determination person been attacks from some sides, the marketplace is holding connected to the information that negotiations are ongoing, and an elusive Iran/U.S. woody to extremity the warfare successful the Middle East and to reopen the ⁠Strait of Hormuz volition inactive beryllium found," XTB probe manager Kathleen Brooks said.

"As the absorption switches to a raft of macro releases aboriginal this week, investors volition request to ticker however this plays out, and immoderate hold successful reaching a woody could sound marketplace sentiment," she said.

The powerfulness of the AI unreserved was underlined by information showing ​South ​Korea's exports grew astatine the strongest yearly complaint successful much than 4 decades successful May ​to deed a grounds $87.75 billion.

Nvidia brag Jensen Huang kicks disconnected ‌the Computex commercialized amusement successful Taiwan connected Monday with a code astir AI successful which helium is expected to expound connected his company's latest merchandise efforts arsenic good arsenic the island's cardinal relation successful the industry.

PAYROLLS AHEAD

European stocks were down marginally connected the day, arsenic gains successful vigor shares were offset by losses successful airlines and defence shares.

S&P 500 futures were up 0.3%, portion Nasdaq futures firmed 0.5% aft the benchmark indexes deed records past week.

The inflationary pulse from lipid continued to hamper enslaved markets arsenic U.S. 10-year yields roseate 1 ground constituent to 4.46%, portion yields connected 10-year German indebtedness roseate 4.2 bps connected the time ‌to 2.98%.