Wall Street climbs on Middle East de‑escalation hopes

Market Commentary

Global markets were mostly positive on Tuesday as Wall Street sentiment lifted. The S&P 500 gained 1%, its highest since late February 2026, on Middle East de-escalation hopes. In the meanwhile, the Nasdaq climbed 1.60% and DJ futures gained 0.64% – lifted by Vice President JD Vance’s note of progress in Iran talks held in Pakistan, with follow-up meetings possibly days away.

JPMorgan eased 0.20% after cutting net interest income guidance, Wells Fargo sank 4.80% on weak results and Johnson & Johnson slipped 0.40%, despite raising its 2026 revenue outlook. BlackRock surged 4% and Citigroup 1.60% on robust earnings, American Airlines leapt 6.50% amid reports of a United merger proposal.

European equities closed mixed overall, leaning positive towards six-week highs as the Euro Stoxx 50 climbed over 1% on Tuesday to a six-week peak, buoyed by hopes of de-escalating Middle East tensions. ASML Holding rose 1.50%, LVMH gained 0.90% despite a disappointing quarterly update, L’Oreal added 1.10%, while Siemens rose 3.90%, Schneider Electric 2.40% and Banco Santander 2.90%. In contrast, Linde fell nearly 3%. The Stoxx 600 advanced 0.90% also to a six-week high, led by Novo Nordisk up 3.70% on its OpenAI partnership for AI-accelerated drug discovery, and Nestlé increasing 1.50%. Shell dropped 3% as oil prices dipped on peace talk optimism despite a blockade.

In the UK, the FTSE 100 edged up just 0.20%, lagging continental Europe’s 1%+ gains amid energy weakness and soft updates. Shell and BP slid 3% and 2.50% as Brent/WTI fell below $100. Imperial Brands tumbled 5% on market share warnings (guidance intact), British American Tobacco lost 3%. Intertek soared 10% on a strategic review hinting at a demerger, while reaffirming outlook; EasyJet was up 4.80% and IAG increased 3%. Focus shifts to ASML, Hermès, Antofagasta and Barratt Redrow earnings.

South Africa’s 10-year bond yield dipped below 8.50% from a near one-week high of 8.55%, mirroring improved global sentiment on US–Iran negotiation hopes. The rand edged firmer to 16.40 per dollar as it softened and oil retreated, with precious metals providing further lift. Markets advanced across the board, closing over 1% higher – led by Metals and Mining, which bucked the trend to gain 1.68%.

Precious metal commodities rallied with gold climbing above $4 800 per ounce on Tuesday, its highest level since 18 March 2026, as progress in US-Iran negotiations weighed on the dollar and pushed oil prices below $100 a barrel, easing inflation concerns. Silver rose by 4.71%, while platinum had a modest increase close to 1%.

Asian indices rose on Tuesday, with Japan’s Nikkei soaring over 2%, as Shanghai and Hang Seng gained nearly 1%. The yen firmed against the dollar, ending a three-day slide as the dollar and oil eased. Meanwhile, Bank of Japan Governor Kazuo Ueda stressed on Monday the need for vigilance against Iran conflict fallout, cautioning that elevated oil could cloud Japan’s growth outlook.