Global stock markets are moving without a common direction on Wednesday, following the announcement of an extension of the truce in the Middle East while remaining attentive to company earnings reports punctuating the week.
“The markets continue to move in a delicate balance between improving their perception and the persistence of geopolitical risks,” commented Daniela Hathorn, an analyst at Capital.com, as US President Donald Trump resolved on Tuesday evening to extend indefinitely the ceasefire observed with Iran since April 8.
Discussions between Washington and Tehran have not resumed. They were supposed to take place at the beginning of the week after an initial session on April 11, aiming to find a lasting solution to a regional war that has claimed thousands of lives and shook the global economy.
On Wall Street, around 15:45 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 has been less enthusiastic. The Paris stock exchange 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 trying to assess whether the latest extension of the ceasefire by President Trump would be sustainable, with persistent doubts about Iran and Israel’s compliance with the agreement,” explained 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,” noted Andreas Lipkow from CMC Markets.
The oil market, a barometer of market confidence since the beginning of the conflict, has seen an increase. The Brent, the European crude oil benchmark, rose by 2.94% to $101.38 per barrel, crossing back above the symbolic $100 threshold. Its US equivalent, 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 the unilateral ceasefire extension by Donald Trump. The Iranian authorities have not yet commented on this extension, but Tehran is “studying various aspects” according to the state television of Iran.
“Although ceasefire announcements and occasional openings of the Strait of Hormuz have helped alleviate immediate concerns about supply disruptions, disruptions in flows persist, thus maintaining a residual risk premium integrated into energy markets,” highlighted Daniela Hathorn.
“Any signs of major de-escalation could trigger a sharp price increase,” warned Fawad Razaqzada, a market analyst at Forex.com. “Another scenario also exists: continued closure of the Strait of Hormuz will further accentuate supply shortages.”
As a wave of corporate earnings results continues, “equity markets have shown notable resilience” while the earnings season is in full swing, concluded Daniela Hathorn.
In Amsterdam, the chipmaker ASM International closed with a 7.11% surge. The company had presented a revenue forecast higher than analysts’ estimates after a first quarter boosted by artificial intelligence.
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 climbed by 7.42% in Frankfurt, driven by ABB’s results.
Published on April 22 at 6:09 pm, AFP
