(Corrects graphic link)

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

President Donald Trump's greatest TACO of all time, peace with Iran, has stock markets once again hitting record highs, driven by everything chip-related, like the Fed has never warned about rate hikes.

With half of Asian markets shut for holidays and the U.S. celebrating Juneteenth on Friday, Japan and South Korea happily extended the momentum to new heights before paring those gains as the day wore on. The Nikkei was still on track for a 7.6% weekly gain while the KOSPI rallied a whopping 11%.

European markets, with less AI exposure, were bracing for a lower open, with pan-region futures off 0.5%.

There is genuine relief that tankers are finally moving through the Strait of Hormuz - three Saudi-flagged vessels laden with crude have sailed through the strait, but it was unclear when supply would rebound to pre-war levels.

Brent crude slumped 9% this week to $79.42 a barrel, about where it was on March 3, and down 37% from its peak in late April, a relief for global central banks.

The holidays do make one wonder if it's the perfect time for Tokyo to stage a sneaky yen intervention. With the U.S. dollar basking in its own rate-hike glow, the yen has been crushed to 161.3 a dollar, well past the supposed 160 line in the sand. The Bank of Japan's rate hike to 31-year highs might as well not have happened.

In Britain, Labour mayor Andy Burnham's new parliamentary seat set up a potential challenge to oust British Prime Minister Keir Starmer. Sterling barely blinked but the Gilt market may have a more dramatic reaction when it opens.

Key developments that could influence markets on Friday:

-- German PPI for May

-- UK retail sales for May

-- Appearances by ECB board members Philip Lane, Piero Cipollone, Frank Elderson in Paris