A look at the day ahead in European and global markets from Tom

Westbrook

While U.S.-Iran talks have stalled, and next to no oil is making

its way through the Strait of Hormuz, stock markets' attention

has swung back to the unabated boom in AI.

Artificial intelligence supply chain stocks rallied markets

in Japan, South Korea and Taiwan to record highs on Monday on a

wave of buying unleashed by Intel's unexpectedly strong revenue

forecast.

With G10 central banks seen leaving rates where they are this

week and the uneasy ceasefire holding in the Middle East, the

focus is on the linchpin of AI gains -- the hyperscalers'

spending plans when they report earnings later this week.

Asia's chipmakers reported record-breaking earnings last week,

with quarterly profit up fivefold at SK Hynix and

Samsung projecting an eightfold jump to an operating

profit of nearly $38 billion for the three months from January

to March.

TSMC, which also posted a record first-quarter

profit, has logged eight straight quarters of double-digit

growth. Share prices can hardly keep up with the rivers of gold,

but they are surging too, with Hynix stock near doubling this

year and the market value of South Korean and Taiwanese stocks

eclipsing those of Germany, according to the World Federation of

Exchanges.

On the Iran front, an Axios report that Iran had proposed

conditions for reopening the Hormuz and separating nuclear

negotiations for another time, buoyed markets on Monday.

German consumer sentiment for May is due on

Monday and investors may start to adjust some of the aggressive

short-term rates positions betting on imminent hikes leading

into European and British central bank meetings.

Key developments that could influence markets on Monday:

- U.S.-Iran peace talks

- Economics: German consumer sentiment for May

- Earnings: Deutsche Boerse, Verizon, Domino's Pizza

(Editing by Kate Mayberry)