Global stock markets shared between geopolitical risk and company results

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 remaining attentive to the company earnings reports that mark 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, while U.S. President Donald Trump resolved on Tuesday night to extend until further notice the truce observed with Iran 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 claimed thousands of lives and shaken the global economy.

On Wall Street, around 3:45 pm GMT, the Dow Jones was up 0.64%, the Nasdaq gained 1.27%, and the broader S&P 500 index rose by 0.79%.

Europe was less enthusiastic. The Paris stock market ended down 0.96%, Frankfurt lost 0.31%, London 0.21%, and Milan declined by 0.25%.

“The market sentiment remained fragile throughout the day, with operators attempting to evaluate whether the latest extension of the ceasefire by President Trump would be lasting, with persistent doubts about Iran and Israel’s adherence to this agreement,” explains Patrick Munnelly of Tickmill Group.

Additionally, “the European economy is more severely affected by the rise in energy prices than that of the United States. This is what investors are currently factoring into their valuations,” notes Andreas Lipkow of CMC Markets.

– Brent at $100 –

The oil market, a barometer of market confidence since the beginning of the conflict, is on the rise.

The Brent, the European oil benchmark, rose by 2.94% to $101.38 per barrel, crossing the symbolic $100 threshold. Its American counterpart, WTI, gained 2.90% to $92.27.

Iran announced on Wednesday that it had seized two ships in the Strait of Hormuz, a few hours after Donald Trump unilaterally decided to extend the truce. The Iranian authorities have not yet commented on this extension, but Tehran is “studying different aspects,” according to the Iranian state television.

“While ceasefire announcements and occasional reopenings of the Strait of Hormuz have helped alleviate immediate concerns about supply, disruptions in flows persist, thus maintaining a residual risk premium integrated into energy markets,” points out Daniela Hathorn.

“Any sign of major de-escalation could trigger a sharp rise in prices,” warns Fawad Razaqzada, a market analyst at Forex.com. “Another scenario also exists: a prolonged closure of the Strait of Hormuz will continue to exacerbate the supply deficit.”

– Wave of Corporate Earnings –

While awaiting new developments, “stock markets have shown notable resilience” as the corporate earnings season is in full swing, highlights Daniela Hathorn.

On Wall Street, American aircraft manufacturer Boeing (+4.75% around 3:45 pm GMT) announced better-than-expected results for the first quarter thanks to the rebound in commercial aircraft deliveries, marked nonetheless by a net loss of $90 million (77 million euros).

The American group GE Vernova, which encompasses the former energy-related activities of the conglomerate General Electric, soared by nearly 13% after reporting a 71% jump in its orders between January and March.

Tesla is also expected to release its results on Wednesday. Analysts anticipate revenue growth of around 13 to 17% compared to last year.

In Amsterdam, the semiconductor manufacturer ASM International ended with a 7.11% increase. It had presented a revenue growth 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 the demand for data center equipment. Energy technologist Siemens Energy climbed 7.42% in Frankfurt, buoyed by ABB’s results.