European and US equity markets rose on Tuesday as investors weighed first‑quarter earnings results against ongoing uncertainty surrounding the fragile US‑Iran cease‑fire. The Nasdaq reached a new record high after a rebound in technology shares, while the Dow Jones and S&P 500 posted modest gains.
Trade Nation analyst David Morrison said the earnings season continues to support US equities, noting a year‑on‑year earnings growth of more than 27 percent – a pace that would represent the strongest quarter since the post‑COVID rebound if it is sustained.
In Europe, French shares advanced 0.7 percent and German stocks rose 1.4 percent in the afternoon session. By contrast, Britain’s FTSE 100 fell over 1 percent after the market opened following the UK bank holiday. The decline was led by a sharp drop in HSBC shares, whose first‑quarter profit missed expectations due to a surprise $400 million fraud‑related charge and heightened exposure to the Middle‑East crisis. Italian lender UniCredit surged more than six percent after reporting a substantial increase in Q1 net profit.
AJ Bell head of markets Dan Coatsworth remarked that robust first‑quarter corporate earnings have helped sustain global equities, but warned that a prolonged lack of resolution to the US‑Iran tension could erode investor confidence.
Oil prices retreated on Tuesday. Brent crude fell 2.7 percent to about $111 per barrel, reversing gains from the previous day, while West Texas Intermediate dropped 3.6 percent to $102.59. The price decline followed an earlier spike after the US military reported intercepting six Iranian boats threatening commercial shipping and repelling missile and drone attacks. The United Arab Emirates also confirmed that Iranian strikes targeted its Fujairah energy hub.
Deutsche Bank managing director Jim Reid said renewed attacks in the Gulf have cast doubt on the durability of the four‑week‑old cease‑fire, dampening sentiment in Asian markets. Hong Kong, Singapore, Mumbai, Bangkok, Manila and Wellington all posted losses, and Sydney fell as the Reserve Bank of Australia raised rates for a third consecutive meeting, citing higher energy costs. Tokyo and Shanghai were closed for holidays.
Key figures at approximately 13:30 GMT:
– Brent crude: $111.37 per barrel (‑2.7 %)
– WTI crude: $102.59 per barrel (‑3.6 %)
– Dow Jones: 49,186.55 points (↑0.5 %)
– S&P 500: 7,245.66 points (↑0.6 %)
– Nasdaq Composite: 25,260.09 points (↑0.8 %)
– FTSE 100: 10,218.85 points (‑1.4 %)
– CAC 40: 8,034.40 points (↑0.7 %)
– DAX: 24,325.06 points (↑1.4 %)
Currency markets showed modest movements, with the dollar strengthening against the yen (¥157.73) and the euro (‑0.2 % versus the pound).
The mixed performance of equities and the pull‑back in oil prices highlight the market’s sensitivity to geopolitical developments while earnings data continue to provide a counterbalance. Investors will be monitoring further developments in the US‑Iran cease‑fire and upcoming corporate disclosures for clues on the direction of global markets.
