Ankara: Global markets are seeing a rebound in risk appetite amid growing optimism over a potential final deal between the US and Iran, alongside strong corporate earnings reports. Investors are also turning their attention towards the upcoming US ADP private-sector labor data set to be released on Wednesday.
According to Anadolu Agency, President Donald Trump's announcement to suspend operations in the Strait of Hormuz, with hints of significant progress towards a final agreement with Iran, has revitalized risk appetite across various markets. The positive sentiment is further bolstered by robust earnings from major tech firms.
Analysts highlight that the increasing use of semiconductors in artificial intelligence (AI) and high-performance computing is expected to drive long-term growth. Any signs of easing tensions in the Middle East are also seen as supporting upward market movements. While the conflict has impacted asset prices, selling pressure in bond markets has begun to ease.
The US 10-Year Treasury yield, which had reached its highest level since July 2025 at 4.4624%, stabilized at 4.42% on Wednesday. Meanwhile, the US dollar has weakened relative to other currencies as oil prices retreat amid hopes that geopolitical risks may subside.
Brent crude oil experienced a decline, dropping 2.9% to $109 per barrel on Tuesday and continuing to fall by 2.2% to $106.5 on Wednesday. The US Dollar Index also saw a slight decrease, closing Tuesday down 0.1% to 98.3 and trading at 98.2 on Wednesday, marking another 0.1% decline.
Central banks worldwide are increasingly expected to refrain from hawkish policy moves as concerns over regional tensions' potential impact on inflation and growth ease. Renewed hopes for an end to the conflict are contributing to a more dovish monetary policy outlook.
Gold prices have risen, reflecting expectations of renewed market momentum and a shift towards more accommodative monetary policy. Gold increased by 0.8% to $4,557 per ounce on Tuesday and gained 2% to $4,646 so far on Wednesday.
In terms of economic data, the US trade deficit climbed by 4.4% on a monthly basis to $60.3 billion in March, falling short of estimates. The JOLTS job openings decreased by 56,000 to 6.866 million last month, which was above market expectations. Additionally, the Institute for Supply Management (ISM) services Purchasing Managers' Index (PMI) fell to 53.6 in April, slightly below the anticipated figure.
US stock markets responded positively, with the S and P 500 rising 0.81%, the Nasdaq 1.03%, and the Dow Jones climbing 0.73% on Tuesday. American indexes started Wednesday on a positive trajectory.
In Europe, stock markets displayed a bullish trend on Tuesday, except for the UK, as investors focused on developments in the Middle East and awaited producer price inflation data from the eurozone. European Commission President Ursula von der Leyen urged member states to prepare for any scenario while implementing an agreement in response to Washington's threat to raise tariffs on EU-origin cars and trucks to 25%.
The EU and Japan recently agreed to enhance cooperation in AI, data management, quantum technology, semiconductors, and digital infrastructure. However, bond yields have faced selling pressure amid concerns that the upcoming local elections in the UK could increase political uncertainty. The UK's 10-year bond yield rose to 5.1%, its highest since March 23, with markets estimating that Prime Minister Keir Starmer's Labor Party may lose votes in the elections.
The DAX 40 rose 1.71%, the CAC 40 1.08%, and the FTSE MIB 30 2.27%, while the FTSE 100 fell 1.4% on Tuesday. European indexes opened Wednesday on a positive note.
In Asia, Chinese and South Korean markets reopened after a holiday, while Japanese markets remained closed on Wednesday. South Korea's Kospi Index saw a significant rise, reaching a new record with a nearly 7% increase, led by Samsung Electronics, whose shares gained over 15%, becoming the second firm in Asia to surpass $1 trillion in market value.
China's RatingDog services PMI for April stood at 52.6, and the composite PMI at 53.1 on Wednesday, indicating accelerating economic activity. By the close, the Kospi rose 6.6%, the Hang Seng Index 0.7%, and the Shanghai Composite Index 1.3%.