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European and US equities climbed on Tuesday as investors balanced strong first-quarter earnings against ongoing uncertainty surrounding the fragile US–Iran ceasefire.
Oil prices eased after both sides exchanged attacks in a struggle over control of the Strait of Hormuz, a key global shipping and export route.
Wall Street’s main indices moved higher at the start of trading in New York, with the Nasdaq hitting a fresh all-time high as technology stocks recovered.
“US equities continue to get a boost from the first quarter earnings season,” said Trade Nation analyst David Morrison.
He noted the year-on-year earnings growth rate over 27 per cent, which if it holds up would make it the strongest quarter since the post-Covid rebound.
In Europe, Paris gained 0.7 percent while Frankfurt rose 1.4 per cent in afternoon trading.
London’s FTSE 100 index fell by over one per cent as trading resumed after the UK bank holiday.
The index was dragged lower by a sharp fall in HSBC shares, after the bank’s first-quarter results missed expectations due to an unexpected $400 million fraud-related charge and concerns linked to Middle East instability.
In contrast, Italy’s UniCredit rose more than six per cent in Milan after reporting a strong increase in first-quarter net profit.
“First-quarter corporate earnings have largely been robust so far, which has helped to sustain global equities despite the uncertain backdrop,” said AJ Bell head of markets Dan Coatsworth.
“However, the longer the situation goes on without any sign of a lasting resolution, the harder it will be for investors to remain positive,” he added.
Oil prices fall
International benchmark Brent North Sea crude dropped around 2.7 per cent to about $111 per barrel, reversing gains from the previous session.
Prices had jumped on Monday after the US military said it struck six Iranian boats considered a threat to commercial shipping, while also repelling missile and drone attacks.
The United Arab Emirates also reported Iranian strikes, including one targeting its Fujairah energy hub.
“Global market sentiment has made a cautious start to the week, with renewed attacks in the Gulf casting doubt on the state of the four-week-old ceasefire,” said Jim Reid, managing director at Deutsche Bank.
Concerns over a possible collapse of the ceasefire weighed on Asian markets, with declines recorded in Hong Kong, Singapore, Mumbai, Bangkok, Manila and Wellington.
Sydney also fell after the Australian central bank raised interest rates for the third consecutive meeting, citing rising energy costs.
Tokyo and Shanghai were closed for holidays.
Key figures at around 1330 GMT
Brent North Sea Crude: DOWN 2.7 per cent at $111.37 a barrel
West Texas Intermediate: DOWN 3.6 per cent at $102.59 a barrel
New York – Dow: UP 0.5 per cent at 49,186.55 points
New York – S&P 500: UP 0.6 per cent 7,245.66
New York – Nasdaq Composite: UP 0.8 per cent at 25,260.09
London – FTSE 100: DOWN 1.4 percent at 10,218.85
Paris – CAC 40: UP 0.7 percent at 8,034.40
Frankfurt – DAX: UP 1.4 percent at 24,325.06
Hong Kong – Hang Seng Index: DOWN 0.8 percent at 25,898.61 (close)
Tokyo – Nikkei 225: Closed for a holiday
Shanghai – Composite: Closed for a holiday
Dollar/yen: UP at 157.73 yen from 157.08 yen on Monday
Euro/dollar: UP at $1.1703 from $1.1701
Pound/dollar: UP at $1.3550 from $1.3538
Euro/pound: DOWN at 86.35 pence from 86.41 pence
