WS #10001

The dominant signal in this window is the G7 leaders' summit, which produced multiple statements with market implications. The G7 formally welcomed the US-Iran peace deal and expressed readiness to contribute to its implementation, while also reaffirming opposition to unilateral changes in the Taiwan Strait status quo and committing to reduce dependence on the Hormuz Strait. These developments are bullish for risk assets and bearish for oil, as evidenced by S&P 500 futures up 0.3% and Nasdaq futures up 0.6% with Brent falling 1%. The G7 also agreed to increase air defense deliveries to Ukraine and increase pressure on Russia's war economy, which is bearish for Russian-linked assets but neutral for broader markets. Additionally, Japan's May trade data showed exports surging 17.0% YoY (vs. 16.2% est.) and a narrower trade deficit of -378.7B yen, which is positive for Japanese equities and the yen. A Chinese rocket breakup in low Earth orbit creating debris overlapping ISS and Starlink orbits is a negative for space-related stocks like SpaceX (private) and satellite operators. The EU rejected the 'Stop Killing Games' initiative, which is a minor negative for gaming stocks but not market-moving. Overall, the US-Iran deal narrative is escalating with G7 endorsement, while the Ukraine conflict remains stable with continued Western support.