Dollar heads for small weekly loss on Middle East peace deal expectations

Markets end the week on the up

European markets closed the week higher, with the Stoxx 600 up 2.5% for May and the S&P 500 on track for its ninth consecutive weekly gain, its longest streak since December 2023. The rally was driven by hopes of a US-Iran ceasefire deal to reopen the Strait of Hormuz, though unresolved negotiations and rising Middle East tensions continue to cap energy and equity upside.