Global equity markets are staging a rebound as investors digest a temporary easing of geopolitical tensions in the Middle East.
The de-escalation has provided a much-needed lift to risk sentiment, which had been weighed down by uncertainty over shipping routes and energy supply disruptions.
With the immediate threat of further escalation receding, capital is flowing back into equities ahead of the start of the trading week.
The positive shift is evident in US equity futures, which are trading higher ahead of the open.
This momentum is being supported by a cooler-than-expected inflation print released recently, which has alleviated fears of additional interest rate hikes by the Federal Reserve.
The combination of easing geopolitical risk and benign inflation data has created a constructive backdrop for global growth stocks.