• S&P/ASX 200 surged 4.44% (5.66σ) on strong sentiment from Australia’s resilient data reports and easing tensions in the region. • Nikkei 225 rose 7.15% (4.87σ), reflecting market relief amid adjusted expectations for US-Iran relations and robust corporate earnings in Japan. • US CCC corporate yields rose 11 bp as risk premiums increased, indicating a shift in sentiment towards higher credit risk amid global tensions. **Recommendations** • Consider tactical longs in Japanese equities — stable fundamentals and easing geopolitical tensions support growth. • Evaluate selective duration plays in corporate bonds with wider spreads to capitalize on income potential amidst rising yields. • Look for opportunities in commodities — strong demand signals in agriculture, especially coffee, may indicate bullish conditions. Global markets experienced a robust and risk-on session today, driven by news of strengthening US-Iran relations and resilient economic indicators from major economies. Reports indicate a renewed optimism about a potential ceasefire in the region, which buoyed investor sentiment, particularly in equities. Notably, the S&P/ASX 200 jumped 4.44% (5.66σ), and the Nikkei 225 soared 7.15% (4.87σ), with traders encouraged by improved risk assessments and vigorous corporate earnings reports in Japan. Microsoft also contributed to the technology sector's rally, climbing 3.64% amid a broad-based recovery in tech equities. Today's economic calendar featured several key releases, including the Existing Home Sales figure in the US, which edged lower to 4.07 million from a previous 4.09 million, reflecting slight cooling in the housing market amidst rising borrowing costs. However, this did not dampen overall market optimism, as equities held strong gains in anticipation of further economic stability. The resilience in housing permits and industrial production data from earlier in the month also supported the broader growth narrative. US Treasury yields rose across the curve, with the 30-year yield increasing 2.0 bp to 4.91%, while shorter maturities also moved higher, reflecting market adjustments to a potential shift in Fed policy, driven by the backdrop of improving economic data and credit spreads. The increase in US CCC corporate yields by 11 bp signaled an uptick in perceived credit risk as market participants adjusted their expectations on the safety of riskier assets amid lingering geopolitical concerns. This was articulated by the recent volatility across sectors, particularly in energy and commodities. In the equity markets, the technology sector outperformed, evidenced by significant moves from major players such as Microsoft (+3.64%) and Alphabet (+1.28%). The Russell 2000 Index also gained 1.52%, suggesting a positive tone across small-cap stocks. In contrast, some sectors struggled, including utilities and consumer staples, indicating a possible rotation by investors into higher-risk assets as global tensions decreased. Turning to commodities, the backdrop of geopolitical improvements buoyed oil prices. Brent crude oil rose 3.53%, reflecting supply concerns amid ongoing geopolitical tensions and the apparent failure of US-Iran negotiations, yet sentiment remained generally stable. Agriculture saw strong performance as well, with coffee prices climbing 4.94%, signaling robust demand conditions. Such price movements are corroborated by unusual moves like the notable rise in the cocoa market and aluminum, reinforcing bullish commodity sentiment. Our Liquidity Regime Signal indicates that conditions are deteriorating, with a composite reading of +2.584, but with negative momentum, suggesting that expansionary conditions might be unstable. This decline indicates a need for cautious optimism; while present market setups indicate relative strength, the underlying liquidity tightening could pose risks for near-term momentum. As markets look towards the upcoming earnings calendar, notable reports from JPMorgan and Johnson & Johnson on April 14 could serve as critical sentiments gauges. With the Fed funds futures indicating a 93.7% probability for a 3.50-3.75% target range by the next FOMC meeting, expectations surrounding these earnings reports will shape rate cut/hike narratives in the face of Fed policy. Overall, sentiment veers cautiously optimistic, yet the market must be cognizant of underlying credit risks and geopolitical developments, which may catalyze volatility ahead as the macro landscape continues to evolve.