Latest Irish Life weekly markets update

Key talking points include:

• Global markets diverged again last week, as investors navigated a mix of shifting AI sentiment and a sharp escalation in geopolitical risk. US equities edged lower as Nvidia's consensus-topping results failed to reverse the broader risk-off tone. In contrast, performance outside the US was notably stronger, with Europe's Stoxx 600 and Japan's Nikkei ending the week at record highs.
• Over the weekend, geopolitical tensions intensified after the US and Israel launched strikes against Iran, prompting a sharp rise in oil prices. Iran retaliated with a series of strikes targeting Israel and neighbouring states hosting US military sites.
• The S&P 500 fell by 0.4% (MTD -0.9%, YTD 0.5%) while the Euro Stoxx 600 rose by 0.5% (MTD 3.7%, YTD 7.0%).
• Markets face a busy and potentially volatile week, with geopolitics and macro data set to compete for investor attention. Developments in the Middle East will remain a key swing factor for risk sentiment, particularly any news affecting energy supply routes and the potential knock-on effects for inflation expectations. Alongside this, a heavy calendar of economic data will be in focus. In the US, key releases include payrolls and retail sales, while European inflation data, ECB meeting accounts and global PMIs will offer further insight into activity trends.