A look at the day ahead in European and global markets from

Kevin Buckland

Some 24 hours on from when U.S. President Donald Trump

announced a truce in the Middle East - despite being disturbed

by some Iranian rocket fire and an Israeli vow to respond -

investors seem to be keeping faith that the worst is over.

Although the global stock rally appears to have petered out

for now, and crude oil looks to have found a floor, there's not

been much retracement of those sizeable market moves, at least

so far.

A big part of that may be that even at the height of the

hostilities, the security of Iran's oil infrastructure and the

vital tanker thoroughfare, the Strait of Hormuz, was never

seriously in doubt.

A buoyant Trump even took to social media to say China can

now, again, purchase Iranian oil, forcing the White House to

swiftly clarify there was no change in stance with regard to

U.S. sanctions.

Trump has also found himself at odds with his own Defense

Intelligence Agency, which said in an initial report that U.S.

bomber strikes on Iran's nuclear facilities at the weekend had

only set the country's capabilities back by a month or two.

Trump said Iran's nuclear program had been "obliterated".

That raises questions about whether the U.S.'s or Israel's

goals in the air war were actually realised, and about what

comes next.

We're very likely to hear more from Trump on the Middle East

as he flies into The Hague for a NATO summit today, where

defence spending will be a primary focus.

Developments in the Middle East are likely to remain the

center of market attention throughout the European trading day,

with very little on the corporate or macro calendars today.

Later, U.S. data is limited to new home sales.

Federal Reserve Chair Jerome Powell will be back on Capitol

Hill to give testimony before the Senate, although having done

the same to the House the previous day, there's not likely to be

much that's new.

In political developments north of DC, Zohran Mamdani, a

33-year-old state lawmaker and self-described democratic

socialist, was poised to win New York City's Democratic mayoral

primary in a surprising upset over former New York Governor

Andrew Cuomo.

Key developments that could influence markets on Wednesday:

-NATO summit

-US new home sales (May)

-Fed Chair Powell testifies before Senate Banking Committee

Trying to keep up with the latest tariff news?

Our new daily news digest offers a rundown of the top

market-moving headlines impacting global trade. Sign up for

Tariff Watch here.

(Editing by Muralikumar Anantharaman)