A look at the day ahead in European and global markets from
Gregor Stuart Hunter
Global equities are nudging higher with fresh record highs
within view, after U.S. President Donald Trump said on Tuesday
that talks to end the Iran war could resume in Pakistan over the
next two days.
Though there's been no confirmation of the timing from Iran,
investor confidence is still intact. The MSCI All-Country World
Index rose 0.2% to extend its winning streak into a ninth
consecutive day on Wednesday, while S&P 500 e-mini futures
held steady just above the 7,000 mark - a level the cash
benchmark briefly touched in late January.
Brent crude edged up 0.6% to $95.33 per barrel,
after the U.S. military said its blockade has completely halted
economic trade going into and out of Iran by sea.
Investors are also weighing up warnings from the
International Monetary Fund, which cut its global growth outlook
on Tuesday, while some traders warned that complacency may be
setting in.
Nevertheless, U.S. earnings season has painted a picture of
a financial sector profiting from the volatility of the first
quarter, with banks reporting booming trading revenues even as
they sounded a note of caution about the ripple impact of higher
oil prices on clients.
ASIA LEADS GAINS
There was little such worry in Asian trade, with MSCI's
broadest index of Asia-Pacific shares outside Japan
up 1.5%. Korea's Kospi led gains,
tacking on 3% to close in on its previous record. Taiwanese
shares rose 1.9% to set fresh all-time highs.
EUROPE MORE GUARDED
Early European trade showed more scepticism. Pan-region
futures were down 0.1%, German DAX futures
slipped 0.1% and FTSE futures were up 0.1%.
Elsewhere, former Federal Reserve Governor Kevin Warsh,
nominated by President Donald Trump to head the U.S. central
bank, is on track to set a new record of his own, reporting
assets worth well over $100 million in new financial
disclosures. That would make him the wealthiest Fed chair in
history if he is confirmed.
Key developments that could influence markets on Wednesday:
Company earnings:
ASML Holding NV, Bank of America Corporation, Morgan Stanley
Economic events:
France: CPI for March
Euro Zone: industrial production for February, reserve
assets for March
Debt auctions:
Germany: 26-year and 30-year government debt