Global stock markets are continuing to rally today as investors cling to hopes of a deal to end the Iran war. Asia-Pacific markets have jumped, following strong gains in Europe and the US yesterday on signs of progress in US-Iran negotiations.
Shares pushed higher after US president Donald Trump said a deal with Iran to end the war was “very possible” after “very good talks” over the past 24 hours. Japan’s Nikkei 225 index surged by 5.7% today, as trading resumed after the extended Golden Week holidays, while South Korea’s KOSPI index rose 1.4% and Australia’s S&P/ASX gained 1%.
Iran is currently reviewing a US peace proposal, after Trump told Tehran to accept a deal to end the war or face a new wave of US bombing. Yesterday, the FTSE 100 surged by almost 220 points, or 2.15%, to 10,438 points, while on Wall Street the S&P 500 hit a record high. Oil plunged, ending yesterday almost 8% lower.
Markets are “aggressively pricing a peace dividend across oil, bonds, and currencies”, reports Stephen Innes, managing partner at SPI Asset Management, even though major geopolitical fault lines remain unresolved. Innes adds: “The market traded like a casino where the fire alarm suddenly stopped ringing just as the champagne carts rolled back onto the floor. The S&P 500 and the Nasdaq Composite surged to fresh all-time highs, but truth be told, this was not merely an American rally. It was a full-blown global melt-up as traders aggressively embraced the idea that the Iran war may finally be shifting from missile trajectories to negotiation tables.”
Today's Key Events
- 7am BST: German factory orders
- 8am BST: Riksbank interest rate decision
- 9am BST: Norges Bank interest rate decision
- 9.30am BST: UK construction PMI
- 12.30pm BST: US Challenger job cuts
- 1.30pm BST: US jobless claims
