By Doloresz Katanich with AP
Published on •Updated
European stocks surged on Wednesday morning as hopes for a swift end to the Iran conflict lifted market sentiment, after a report by Axios said Washington and Tehran were closing in on a one-page framework agreement to halt the war and open the door to broader nuclear negotiations.
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According to the report, US officials expect Iran to respond on several key points within the next 48 hours, with sources describing the talks as the closest the two sides have come to a deal since the conflict began.
The prospect of a breakthrough extended a global equity rally into Europe, with major benchmarks climbing more than 2% by 11:00 CET. The EURO STOXX 50 rose 2.75%, Germany’s DAX gained nearly 3%, London’s FTSE 100 added 1.9%, and France’s CAC 40 advanced 2.75%.
Oil prices also extended losses. International benchmark Brent crude for next-month delivery fell 5.5% to below $104 a barrel by 11:00 CET, while US benchmark West Texas Intermediate dropped more than 6.2% to $95.89 a barrel. Despite the sharp decline, oil prices remain well above the roughly $70 levels seen before the conflict began.
Crude prices have started falling previously after US President Donald Trump said Washington would temporarily pause “Project Freedom”, its naval mission escorting ships through the Strait of Hormuz, citing “great progress” in talks with Tehran.
In a post on Truth Social, Trump said the pause would allow time to determine whether an agreement “can be finalised and signed”, while stressing that the US blockade of Iranian ports would remain in force.
Equity markets rally as Samsung tops $1tn valuation on AI boom
In Asia, South Korea’s Kospi surged 6.5% to a record high after markets reopened following Tuesday’s holiday. The rally was led by Samsung Electronics, whose shares jumped almost 13%, pushing the company’s market value above $1 trillion for the first time.
Samsung, alongside rival SK Hynix, has emerged as a major supplier of high-performance chips powering the global AI boom. Shares in SK Hynix also rose around 10% in early trading.
Elsewhere in Asia, Australia’s S&P/ASX 200 gained nearly 1%, while Hong Kong’s Hang Seng rose 0.7% and Shanghai’s Composite index added 1%.
Japanese markets remained closed for a public holiday.
US stocks also closed higher on Tuesday, with the S&P 500 rising 0.8% to a fresh record high. The Dow Jones Industrial Average gained 0.7%, while the tech-heavy Nasdaq Composite advanced 1% to another all-time high.
Markets were also supported by hopes of progress in talks aimed at ending the US-Iran conflict, helping ease concerns over energy supplies and global trade disruption.
Economic data from the US painted a mixed picture. Growth in the services sector slowed unexpectedly last month, while separate figures showed job openings were slightly stronger than forecast, signalling continued resilience in the labour market.
Meanwhile, UK government borrowing costs climbed to their highest level in nearly three decades amid concerns over local elections and rising energy prices. Yields on 30-year gilts rose to 5.78%, their highest level since 1998, while 10-year yields climbed above 5.10%.
In currency markets, the dollar was little changed at 157.88 yen, while the euro edged higher to $1.1720.
Gold futures rose 2% to $4,662 an ounce, while silver prices climbed 3.5% in European morning trading.
