Equities Rally as Geopolitical and AI Fears Ease: Danske Bank

A strong session in global equities pushed year-to-date gains close to 15%, according to Danske Bank’s research team. The rally was fueled not by better growth expectations but by a compression of risk premia as two key overhangs faded. Easing concerns over the Iran conflict and the AI bubble restored risk appetite.

Reduced downside fears drove the move, the bank noted, rather than an improved economic outlook. The session reflected a relief rally as geopolitical tensions and tech sector jitters subsided.