Stocks Are Erasing War Losses on Hopes Over Talks: Markets Wrap
(Bloomberg) — Stocks are rallying on optimism over renewed US-Iran talks, with a number of major markets erasing their war-driven declines.
China’s CSI 300 Index became the latest gauge to recoup losses since the conflict started in late February, joining Taiwan and Singapore. Wall Street benchmarks have already reclaimed those levels, with the S&P 500 closing in on its record high set in late January. Optimism that the US and Iran will enter further negotiations is also helping to keep oil below $100 a barrel.
Copper advanced to erase losses sustained since the war in the Middle East began more than six weeks ago. The MSCI All Country World Index rose 0.1% on Wednesday, extending its rally to a ninth session — the longest winning streak since September. The rally may lose steam as futures indicated European shares will drop 0.4% at the open after ASML Holding NV’s earnings.
Market sentiment has improved on expectations that easing in Middle East tensions after more than a month of hostilities will help moderate oil prices and inflation, while supporting economic growth. The US and Iran are seeking a second round of talks in the coming days, as tensions in the Strait of Hormuz deepen the global energy crisis ahead of next week’s ceasefire expiry.
“Markets are turning up the risk appetite as US-Iran talk resumes,” said Anna Wu, cross asset strategist at Van Eck Associates Corp. “The sustainability of this risk-on rally may still need testing, given the volatile nature of peace talks.
The fact that Asian markets, which were among the hardest hit by the Iran war, are starting to recoup war-related losses signals investors are growing more confident that tensions in the Middle East will ease. In one sign of optimism, the offshore yuan strengthened for an eighth straight day on Tuesday.
MSCI’s Asia Pacific equity index rose 0.9% on Wednesday, having earlier risen as much 1.4%. South Korea led gains, with its benchmark — the world’s second-best performer this year — jumping 2.1%.
Brent crude fluctuated. The commodity rose 0.8% to $95.55 a barrel, having earlier fallen to as low as $93.93 after President Donald Trump told Fox News that he sees the war as close to ending.
Elsewhere, gold edged lower to about $4,820 an ounce. Treasuries held their gains as lower oil prices eased inflationary pressures, while the Bloomberg gauge of the dollar was little changed after seven days of losses.
Trump said talks may resume “over the next two days” in Pakistan, the New York Post reported, building on a marathon yet inconclusive session in Islamabad on Saturday night. Even so, the US pressed ahead with a naval blockade of the Strait of Hormuz to curb the Islamic Republic’s oil exports, as the battle for control of the strategic waterway intensifies.
“It’s been a volatile period for investors, and markets continue to test their patience,” said Josh Gilbert, a market analyst at eToro Ltd. “What’s clear is that investors have become more resilient over the past few weeks and are becoming more accustomed to navigating these environments rather than simply reacting to them.”
What Bloomberg’s Strategists Say:
“Asian equities benchmarks are lining up to join US peers by recapturing or overtaking the highs reached before the US-Iran conflict. The resilience of earnings expectations is likely playing a key role, and the stocks rebound will gain momentum as long as the outlook for companies shows scant impact from the largest energy shock of the modern era.”
— Garfield Reynolds, MLIV Team Leader. For full analysis, click here.
Traders are also focused on first-quarter earnings at a time when the war in the Middle East is weighing on the outlook for the economy. JPMorgan Chase & Co. shares slipped despite a record quarterly trading revenue haul. Citigroup Inc. rose after reporting its highest quarterly return in five years on tangible common equity.
BlackRock Inc. took in a net $130 billion of client cash in the first quarter, with investor money continuing to pour in despite volatility in the public and private markets and protracted uncertainty over the war in Iran. Shares rose 3%.
“Companies continue to show remarkable resilience in the face of supply chain, tariff, and now energy challenges,” said Scott Helfstein, head of investment strategy at Global X ETFs. “This should be reassuring for investors.”
Corporate News:
ASML Holding NV raised its full-year sales forecast as a surge in global artificial intelligence spending fuels greater demand for its advanced chipmaking machines. Commerzbank AG Chief Executive Officer Bettina Orlopp said that she has had some talks with UniCredit SpA about a deal after the Italian bank announced a takeover bid for the German lender, noting that the two companies are still at odds over the valuation. Anthropic PBC has received several offers from investors for a new round of funding that could value the artificial intelligence startup at about $800 billion or higher — overtures that the Claude maker has so far resisted, according to people familiar with the matter. Asian software and information-technology stocks surged after Nvidia Corp. unveiled a suite of new open-source AI models aimed at accelerating progress within quantum computing. Some of the main moves in markets:
Stocks
S&P 500 futures were little changed as of 6:52 a.m. London time Nasdaq 100 futures were little changed The MSCI Asia Pacific Index rose 0.9% Japan’s Topix rose 0.2% Australia’s S&P/ASX 200 was little changed Hong Kong’s Hang Seng rose 0.4% The Shanghai Composite rose 0.2% Euro Stoxx 50 futures fell 0.4% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1790 The Japanese yen was little changed at 158.94 per dollar The offshore yuan was little changed at 6.8146 per dollar The British pound was little changed at $1.3565 Cryptocurrencies
Bitcoin fell 0.2% to $74,021.73 Ether rose 0.1% to $2,318.47 Bonds
The yield on 10-year Treasuries was little changed at 4.25% Japan’s 10-year yield declined 1.5 basis points to 2.400% Australia’s 10-year yield declined two basis points to 4.93% Commodities
Spot gold fell 0.4% to $4,820.64 an ounce West Texas Intermediate crude rose 0.3% to $91.55 a barrel This story was produced with the assistance of Bloomberg Automation.
–With assistance from Carmeli Argana.
©2026 Bloomberg L.P.
