Paris (awp/afp) – Global stock markets are moving without a common direction on Wednesday, split after the announcement of the extension of the truce in the Middle East, while being attentive to the company earnings reports that punctuate the week.
“The markets continue to evolve in a fragile balance between improving their perception and the persistence of geopolitical risks,” comments Daniela Hathorn, analyst at Capital.com, as U.S. President Donald Trump resolved Tuesday evening to extend the ceasefire with Iran indefinitely since April 8.
Discussions between Washington and Tehran have still not resumed. They were supposed to take place early in the week after an initial session on April 11, aiming to find a lasting end to a regional war that has killed thousands and shaken the global economy.
On Wall Street, around 15:45 GMT, the Dow Jones was up 0.64%, the Nasdaq gained 1.27%, and the broad S&P 500 index awarded itself 0.79%.
Europe showed less enthusiasm. The Paris stock exchange ended down 0.96%, Frankfurt lost 0.31%, London 0.21%, and Milan fell by 0.25%.
“The market sentiment remained fragile throughout the day, with operators trying to assess whether the latest extension of the ceasefire by President Trump would be sustainable, with persistent doubts about Iran and Israel’s adherence to this agreement,” explains Patrick Munnelly of Tickmill Group.
Furthermore, “the European economy is more severely affected by the rise in energy prices than the United States. This is what investors are currently factoring into their valuations,” notes Andreas Lipkow of CMC Markets.
The Brent at $100
The oil market, a barometer of market confidence since the beginning of the conflict, is rising.
Brent, the European crude oil reference, was up 2.94% at $101.38 per barrel, passing the symbolic $100 threshold. Its American equivalent, WTI, gained 2.90% to $92.27.
Iran announced Wednesday that it had seized two ships in the Strait of Hormuz, a few hours after Donald Trump unilaterally decided to extend the ceasefire. The Iranian government has not yet commented on this extension, but Tehran is “studying different aspects,” according to the Iranian state television.
“Although the ceasefire announcements and occasional reopenings of the Strait of Hormuz have helped alleviate immediate concerns about supplies, disruptions persist, thus maintaining a residual risk premium integrated into energy markets,” emphasizes Daniela Hathorn.
“Any sign of major de-escalation could lead to a sharp increase in prices,” warns Fawad Razaqzada, market analyst at Forex.com. “Another scenario also exists: the prolonged closure of the Strait of Hormuz will continue to accentuate the supply deficit.”
Flurry of company earnings
While awaiting new developments, “stock markets have shown remarkable resilience” as the earnings season is in full swing, highlights Daniela Hathorn.
On Wall Street, American aircraft manufacturer Boeing (+4.75% by 15:45 GMT) announced better-than-expected results in the first quarter thanks to the recovery in commercial aircraft deliveries, marked nonetheless by a net loss of $90 million ($77 million euros).
The American group GE Vernova, which comprises the former energy-related activities of General Electric conglomerate, soared by nearly 13% after reporting a 71% surge in orders between January and March.
Tesla is also expected to release its results on Wednesday. Analysts anticipate a revenue growth of about 13 to 17% compared to last year.
In Amsterdam, the electronic chip manufacturer ASM International ended with a jump of 7.11%. It had presented a revenue increase forecast higher than analysts’ estimates, after a first quarter boosted by artificial intelligence.
The Swiss-Swedish industrial conglomerate ABB (+3.40% on the Swiss stock exchange) raised its financial targets for 2026 after much better-than-expected orders in the first quarter, driven by demand for data center equipment. Energy company Siemens Energy rose by 7.42% in Frankfurt, supported by ABB’s results.
afp/ib
