Global equities rallied in a broad risk-on move as optimism around a potential end to the Iran war lifted sentiment, driving strong gains in US markets led by technology and AI-linked stocks. Europe advanced despite rising inflation pressures, while Asia-Pacific markets were mixed as ongoing geopolitical uncertainty capped upside.
Peace hopes spark Wall Street rally
US equities surged as renewed optimism around a potential end to the Iran war drove a sharp risk-on move. The DOW rose +2.1%, the S&P 500 gained +2.3%, and the NASDAQ advanced +3.3%, with tech giants leading gains as Nvidia climbed +4.8% and Microsoft rose +2.6%. Sentiment improved following reports Iran may be open to ending hostilities and comments from President Trump suggesting the conflict could conclude soon, stating the war ‘won’t last much longer’ and that the Strait of Hormuz would reopen ‘automatically’ after a US withdrawal. However, messaging remained inconsistent, with Trump also saying the US is ‘obliterating’ Iranian targets and signalling potential control over the country’s oil assets. Oil futures remained elevated despite the rally with supply risks persisting after Iran struck a Kuwaiti tanker. In stock news, Marvell rose +12.7% after a US$2bn investment from Nvidia, while Apellis surged +135.6% on a takeover by Biogen and CoreWeave gained +9.7% on fresh financing. Macroeconomic data was mixed, with consumer confidence rising above expectations, while labour market indicators softened, with job openings falling and hiring dropping to the lowest level since 2020. The US two-year yield and the 10-year yield fell -3bp to 3.795% and 4.313% respectively.
Europe rises as energy-driven inflation pressures build
European equities rose despite persistent geopolitical uncertainty, with the STOXX 600 up +0.4%, alongside gains in France’s CAC 40 (+0.6%), Germany’s DAX (+0.5%), and the UK’s FTSE 100 (+0.5%), as markets stabilised after early weakness, though the region recorded its worst monthly performance in six years. Inflation pressures re-emerged, with euro area CPI rising to 2.5% in March, above the ECB’s 2.0% target and up from 1.9% in February, driven by higher energy prices linked to the Iran conflict. Unilever fell -7.3% after outlining plans to merge its foods business with McCormick in a deal valuing the unit at US$15.7bn, while Novo Nordisk slipped -0.1% after launching a subscription model for its Wegovy drug amid intensifying competition from Eli Lilly (+3.1%).
Asia-Pacific mixed as de-escalation hopes ease oil pressures
Asia-Pacific markets were mixed as signs of potential de-escalation in the Iran conflict helped equities recover from early losses. Japan’s Nikkei 225 fell -1.6% while South Korea’s KOSPI dropped -4.3%, though both pared steeper declines earlier in the session. Hong Kong’s Hang Seng inched up +0.2% and China’s Shanghai Composite fell -0.8%. Australia’s ASX 200 rose +0.2%, reversing earlier losses as optimism around a potential end to hostilities supported sentiment, though gains faded amid ongoing concerns over supply disruptions. New Zealand’s NZX 50 rose +1.3%, led by gains in Fisher & Paykel Healthcare (+3.5%), though business confidence weakened sharply, with the ANZ survey falling to 33, marking its largest monthly decline in four years.
Gold shines as WTI slips
WTI Crude slipped -0.8% to US$102.01/bbl, Gold rose +3.4% to US$4,661.61/oz, and Silver leapt+7.0% to US$74.9oz.
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