S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
- Asian stock markets open with strong gains after the US and Iran confirmed a two-week ceasefire.
- Easing inflation concerns temper hawkish central bank bets and further boost investors’ sentiment.
- The focus shifts to the FOMC Minutes and the US macro data, due during the latter half of the week.
Asian equity markets rallied on Wednesday, tracking US stock index futures, in reaction to the US-Iran ceasefire news, with Japan’s Nikkei 225 and South Korea’s Kospi rising over 5% intraday.
US President Donald Trump announced in a post on Truth Social that he will suspend planned military strikes against Iran for two weeks, provided Tehran agrees to a complete, immediate, and safe opening of the Strait of Hormuz. Iran said that it has accepted a two-week ceasefire, with negotiations to begin on Friday in Islamabad, Pakistan. The development boosts investors’ confidence and triggers a massive risk-on rally across the global financial markets.
Meanwhile, Iran’s Foreign Minister, Seyed Abbas Araghchi, said in a statement that safe passage through the key waterway will be possible for a period of two weeks. Crude Oil prices plunge over 10% following the announcement, which eases inflationary concerns and tempers expectations for a more hawkish stance by major central banks. This turns out to be another factor that provides an additional boost to riskier assets and remains supportive.
As investors digest the latest optimism, the market focus now shifts to the release of FOMC Minutes, due later during the North American session. The attention will then shift to the US Personal Consumption Expenditure (PCE) Price Index – the Fed’s preferred inflation gauge – and the crucial US Consumer Price Index (CPI) report on Thursday and Friday, respectively. The positive geopolitical developments, however, favor bullish traders.
