US equities posted gains last week as AI optimism outweighed concerns about Middle ‌East peace negotiations. At the start of the week, investors welcomed reports that Iran and the US had agreed to broad principles of a peace agreement. On the macro front, US consumer confidence edged lower in May as the inflationary impacts of the war intensified. The Fed’s preferred inflation measure, Core PCE, came in at 3.3%, as expected. 

Over in Europe, ECB President Christine Lagarde said that the central bank is likely to raise its inflation forecast at its June monetary policy meeting. Markets are fully expecting a rate hike at the June meeting. Elsewhere, New Zealand’s central bank voted narrowly to keep rates unchanged but…