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

Wee

It's hard to pop the champagne when you're constantly looking

over your shoulder.

Asian stocks took an early lead from Wall Street on Thursday

to scale all-time peaks, though there was hardly much reprieve

for investors in the Middle East war as a standoff between Iran

and the U.S. persisted.

There were good tidings in Asia with SK Hynix

setting a record for quarterly profit, South Korea's economy

delivering its fastest growth in nearly six years last quarter

and Japan's manufacturing activity expanding at its strongest

pace in four years in April.

But the big question remains whether that momentum (now

mostly historic) will last.

Indexes in Japan, South Korea and Taiwan notched records

early in the session, though those gains quickly reversed and it

was largely a sea of red across most bourses as the trading day

got underway.

Investors are having hard time going all out on risk when

Iran has seized two ships in the Strait of Hormuz and as a

fragile ceasefire hangs in the balance for now.

The U.S. military has meanwhile intercepted at least three

Iranian-flagged tankers in Asian waters and is redirecting them

away from their positions near India, Malaysia and Sri Lanka,

shipping and security sources said.

Brent crude futures were firmly back above $100 a

barrel.

It's another busy day for Europe with more corporate

earnings and a slew of flash PMI readings from the UK, Germany,

France and the broader euro zone due.

As it is, companies from consumer goods to travel and mining

have already struck a cautious tone, warning that the Middle

East war is driving up costs, disrupting supply chains and

hurting consumer confidence, clouding financial outlooks.

Governments are also starting to sound the alarm on the

impact higher energy prices are having on their economies.

New Zealand's economic recovery has been delayed but not

derailed, Finance Minister Nicola Willis said on Thursday, after

the conflict lifted fuel costs and dented business and consumer

sentiment.

That comes a day after Germany's economy ministry cut its

growth forecasts for 2026 and 2027 and raised its inflation

projections.

Key developments that could influence markets on Thursday:

- UK, France, Germany, euro zone flash PMIs (April)

- Nokia, J Sainsbury, Orion Oyj earnings

(Editing by Sam Holmes)