15th Apr 2026 06:59
(Alliance News) - Middle East optimism lifted equities in Asia on Wednesday, but Europe is set to open slightly lower after a strong day on Tuesday, with corporate reports also in focus.
The corporate calendar has results from Paris-listed luxury retailer Hermes International, while numbers from ASML International are already out. In the UK corporate diary, there are trading statements from housebuilder Barratt Redrow, miner Antofagasta and recruiter Robert Walters.
IG says futures indicate the FTSE 100 to open just 0.9 points lower at 10,608.16 on Wednesday. The index of London large-caps closed up 26.10 points, 0.3%, at 10,609.06 on Tuesday.
The CAC 40 in Paris is called down 0.3% and the DAX 40 in Frankfurt 0.2% lower. They had jumped 1.1% and 1.3% on Tuesday, however.
"Stocks gained yet more ground yesterday, as crude crumbled, and the dollar rolled over, amid growing hopes for a peace deal in the Middle East. Today, geopolitics remains in focus, along with a host of remarks from monetary policymakers, and the conclusion of bank earnings season," Pepperstone analyst Michael Brown commented.
Bank of America and Morgan Stanley release results before the open bell in New York.
Brown continued: "That 'direction of travel' remains, by and large, towards some sort of US-Iran peace deal being done, amid further reports through yesterday's session that additional talks between the two sides are soon set to take place. Simply continuing in this direction is, for the time being, enough for market participants to focus squarely on the light that is now emerging at the end of this particular tunnel, especially given that the fortnight-long ceasefire continues to hold."
In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.7%, the S&P 500 up 1.2% and the Nasdaq Composite up 2.0%.
In Tokyo on Wednesday, the Nikkei 225 rose 0.9%. In China, the Shanghai Composite was up 0.2, while the Hang Seng Index traded up 0.5%. The S&P/ASX 200 in Sydney was up 0.1% in late dealings.
US Vice President JD Vance said on Tuesday that the ceasefire between the US and Iran was holding and that President Donald Trump wanted not just a "small deal" with Tehran, but "the grand bargain."
"Right now the ceasefire is holding," the Republican said at an event in Athens in the state of Georgia.
Vance said talks between the US and Iran in Pakistan last weekend made "a ton of progress."
Trump said he believes the war in Iran is nearing an end, according to excerpts of an interview with Fox News released in advance.
Against the dollar, sterling was largely unchanged at USD1.3569 early Wednesday, from USD1.3571 late Tuesday. Versus the euro, it edged up fractionally to EUR1.1506 from EUR1.1503.
Against the dollar, the single currency was down at USD1.1792 from USD1.1799. Versus the yen, the buck rose to JPY158.93 from JPY158.79.
The yield on the 10-year US Treasury narrowed to 4.25% early Wednesday from 4.28% at the time of the London equities close on Tuesday. The 30-year yield eased to 4.86% from 4.88%.
War in the Middle East has caused "a major supply shock", the head of the Bank of England has said, but he remained tight-lipped on what it could mean for interest rates.
However, while Governor Andrew Bailey acknowledged the Iran conflict had caused a "large" jolt to the global economy, he said the UK was much better placed to deal with it because of its resilient banking system, forged in the wake of the 2007-09 financial crisis.
Bailey was speaking before financial leaders, including UK Chancellor Rachel Reeves, arrived in Washington DC for the spring meetings of the International Monetary Fund.
Earlier, the influential body issued a gloomy outlook which found Britain had suffered the sharpest cut to growth forecasts of the largest global economies.
The IMF said the spike in energy prices caused by the war would help push UK inflation towards 4% – double the Bank of England's inflation target – and contribute to higher costs for households.
A barrel of Brent fell to USD95.59 on Wednesday from USD96.28 at the time of the London equities close on Tuesday. Gold traded at USD4,817.11 an ounce, up from USD4,806.75.
Wednesday's global economic calendar has eurozone industrial production data and the Federal Reserve's Beige Book.
On the corporate front, shares in Amsterdam-listed semiconductor manufacturer ASML will be in focus. The company, Europe's largest by market capitalisation, now sees 2026 total net sales to be between EUR36 billion and EUR40 billion. It previously predicted sales between EUR34 billion and EUR39 billion.
By Eric Cunha, Alliance News news editor
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