Markets mixed as US hits record highs amid ceasefire extension

Market Commentary

US equities rose on Wednesday, buoyed by an extended Iran ceasefire and robust corporate earnings. The S&P 500 advanced 1.10%, the Nasdaq 100 climbed 1.70% to new peaks, and the Dow Jones rose 0.70%. Donald Trump announced an extension of the ceasefire with Iran until negotiations conclude, easing earlier fears of escalation that could have deepened the global energy shock. Markets also appeared to look through Iran’s recent strike and the seizure of commercial vessels. Technology stocks led the advance as improving risk appetite lifted more cyclical and growth-oriented sectors, with chipmakers extending their rally to a 16th straight session. Broadcom, AMD, and Micron Technology surged between 5% and 8%. Apple Inc. gained 2.30% as investors evaluated John Ternus as a potential incoming CEO, while Tesla Inc. edged higher ahead of its earnings release.

European equities extended losses into a third session as rising energy prices and persistent geopolitical tensions weighed on sentiment. Disruptions near the Strait of Hormuz—despite a ceasefire extension—kept energy markets tight, feeding into inflation concerns and dampening the outlook for growth. This pressure was reflected in weaker consumer confidence across the Eurozone and broader EU, while markets continue to price in further tightening from the European Central Bank. Cyclical sectors, including consumer discretionary, industrials and financials, led the decline, while energy and mining stocks offered some support on the back of firmer commodity prices. In the UK, the FTSE 100 also edged lower amid similar pressures, with rising inflation—driven largely by higher energy costs linked to the Iran conflict—reinforcing the cautious tone.

In Asia, China’s Shanghai Composite and Shenzhen Component Index advanced, supported by the region’s relative resilience to Middle East tensions. Technology stocks led the gains, although Contemporary Amperex Technology declined following a share sale. In Japan, the 10-year government bond yield held near recent highs as investors reassessed the outlook for the Bank of Japan. Export growth extended for a seventh consecutive month, but the trade surplus fell short of expectations.

In South Africa, annual inflation edged up slightly in March, with core inflation also ticking higher and monthly price pressures firming. Government bond yields rose as markets reassessed the outlook, while Lesetja Kganyago signalled that interest rates are likely to remain elevated for longer. The South African Reserve Bank’s cautious stance kept markets focused on the policy path, even as the rand strengthened modestly against the dollar and gained further against the pound and euro.

Brent crude rose to around $101 per barrel after renewed attacks on shipping near Iran intensified supply concerns, underscoring ongoing disruptions despite the ceasefire. Commodity markets were broadly firmer, with gains in precious and industrial metals, while lithium carbonate edged lower.