FISG Daily Market Wrap 22th September

Tech Rally Lifts Stocks as Iran Diplomacy and Stronger Gulf Flows Pressure Oil

A rally in technology giants pushed global stocks toward their strongest day since early August, while hopes for diplomatic efforts to end the Iran war drove oil prices lower and provided further support to markets. Global equities advanced as fresh AI developments reinforced expectations for continued investment and stronger semiconductor demand. MSCI’s All Country World Index rose for a fourth consecutive day to a two-week high, while Asian shares gained 0.7% for a fifth straight session. Samsung and SK Hynix climbed alongside Monday’s Wall Street rally, which was partly driven by Meta’s new AI agent. Sentiment improved further after Alibaba unveiled a new AI chip designed to compete with Nvidia, while Tencent launched its latest image-generation model. European equity futures pointed higher, while S&P 500 futures were little changed and Nasdaq 100 contracts edged up 0.1%. Oil steadied after falling nearly 8% over four sessions as Middle East supply concerns eased and traders monitored renewed diplomatic efforts between the US and Iran. Improved traffic through the Strait of Hormuz and recovering Saudi export capacity also reduced immediate supply fears. Brent rose 1.4% to around $101.70 a barrel after four consecutive declines. Saudi crude loadings from the Persian Gulf jumped over the weekend, with the number of ships at the country’s main Gulf port reaching its highest level since June. Iran proposed opening the Strait of Hormuz early, “within 7 days,” after the US blockade is lifted, according to Kyodo News. US and Chinese officials concluded a second day of talks in New York covering AI, investment and trade ahead of Xi’s US visit and the Trump-Xi summit later this week. Bitcoin pulled back after surging more than 7% to above $87,000 on Monday as investors moved back into riskier assets. Elsewhere, an independent review of the Reserve Bank of New Zealand recommended placing greater emphasis on the inflation-adjusted Official Cash Rate when setting monetary policy, alongside greater transparency around policy decisions. In Australia, Victoria introduced tighter rules for new data centres, including restrictions near residential areas and requirements for operators to match their electricity demand with renewable generation. Brazil’s presidential campaign is increasingly drawing comparisons with Milei’s Argentina, with competing candidates using the country’s economic policies to highlight contrasting approaches ahead of the election. FISG Daily Market Wrap provides a concise view of the forces moving global markets, helping investors stay informed and better prepared for what comes next.