Global equity markets, including from the US, Europe and Asia, rose while oil prices fell yesterday, as traders cheered news of ceasefire proposals to de-escalate the ongoing conflict in the Middle East.
Markets are weighing reports that the US has sent a 15-point ceasefire proposal to Iran that was reportedly delivered via Pakistan.
An Iranian official said Tehran has received the proposal but considers its conditions excessive, adding that the country will end the war only at a time of its own choosing and if its conditions are met.
On Wall Street, the Dow Jones Industrial Average rose 0.92 per cent, the S&P 500 rose 0.89pc and the Nasdaq Composite rose 1.29pc.
In Europe, the STOXX 600 index rose 1.34pc. London’s FTSE 100 was up 1.17pc.
MSCI’s gauge of stocks across the globe rose 1.21pc.
Overnight in Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan closed higher by 1.82pc.
“The mood is on the positive side,” said Amelie Derambure, senior multi-asset manager at Amundi. “(The) market is trading now the idea that peace talks or a ceasefire could be on the way.”
Derambure said traders were positioning themselves to avoid missing out on a possible “relief rally,” when markets rise on positive news, although she added that more convincing news will be needed for the move to be sustained.
A senior Iranian official told Reuters that Pakistan had delivered the US proposal to Iran, and that either Pakistan or Turkey could be venues for discussions about de-escalating the war.
Oil prices, which have risen sharply since the joint US-Israeli strikes on Iran, eased slightly. Brent crude futures were down 3.9pc at $100.42 a barrel while US West Texas Intermediate crude futures down 3.8pc at $88.86 a barrel.
Iran has said that “non-hostile vessels” may cross the Strait of Hormuz if they coordinate with Iranian authorities, but the waterway, which typically carries about one-fifth of the world’s gas and crude supply, remains effectively closed.
US bond yields were lower across the board. The yield on benchmark US 10-year notes fell 7 basis points to 4.324pc. European government bond yields also fell, in a move led by Italian bonds, which had been particularly hard-hit since the war started due to Italy’s dependence on fossil fuel imports.
The benchmark 10-year German yield fell 5.1 basis points to 2.964pc.
In currencies, the US dollar gained against its peers including the Japanese yen, Swiss franc and the euro.
The euro was down by 0.32pc at $1.1569. The Japanese yen weakened 0.21pc against the greenback to 159.04 per dollar. The Swiss franc was down 0.27pc to 0.79 against the dollar.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.21pc to 99.40. Gold prices rose, as falling oil prices eased some of the concerns about inflation. Spot gold rose 2.05pc to $4,565.41 an ounce.
Meanwhile, most Gulf stock markets ended higher yesterday, with Dubai leading regional gains, as optimism over a possible ceasefire grew.
Dubai’s main share index jumped 4.2pc, its biggest intraday gain since December 2024, with blue-chip developer Emaar Properties surging 7.6pc and top lender Emirates NBD climbing 6.8pc.
In Abu Dhabi, the index concluded 2pc higher, with Aldar Properties leaping 6.1pc while Adnoc Logistics climbed 4.2pc. The maritime logistics provider said recent developments in the region had not materially impacted its global operations and that it remains financially strong and fully operational across all divisions.
The Qatari index advanced 1.4pc, led by a 3.1pc rise in Qatar Islamic Bank.
Saudi Arabia’s benchmark index finished 1.2pc higher, with the country’s biggest lender by assets Saudi National Bank rising 2.2pc. Elsewhere, oil major Saudi Aramco added 0.8pc.
Outside the Gulf, Egypt’s blue-chip index closed 1.2pc higher, with Commercial International Bank rising 1.5pc.
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