Wall Street closes at a record for the first time since end of January
A look at the day ahead in European and global markets from Gregor Stuart Hunter
Global equities are nudging higher with fresh record highs within view, after U.S. President Donald Trump said on Tuesday that talks to end the Iran war could resume in Pakistan over the next two days.
Though there’s been no confirmation of the timing from Iran, investor confidence is still intact. The MSCI All-Country World Index rose 0.2% to extend its winning streak into a ninth consecutive day on Wednesday, while S&P 500 e-mini futures held steady just above the 7,000 mark - a level the cash benchmark briefly touched in late January.
Brent crude edged up 0.6% to $95.33 per barrel, after the U.S. military said its blockade has completely halted economic trade going into and out of Iran by sea.
Investors are also weighing up warnings from the International Monetary Fund, which cut its global growth outlook on Tuesday, while some traders warned that complacency may be setting in.
Nevertheless, U.S. earnings season has painted a picture of a financial sector profiting from the volatility of the first quarter, with banks reporting booming trading revenues even as they sounded a note of caution about the ripple impact of higher oil prices on clients.
ASIA LEADS GAINS
There was little such worry in Asian trade, with MSCI’s broadest index of Asia-Pacific shares outside Japan up 1.5%. Korea’s Kospi led gains, tacking on 3% to close in on its previous record. Taiwanese shares rose 1.9% to set fresh all-time highs.
EUROPE MORE GUARDED
Early European trade showed more scepticism. Pan-region futures were down 0.1%, German DAX futures slipped 0.1% and FTSE futures were up 0.1%.
Elsewhere, former Federal Reserve Governor Kevin Warsh, nominated by President Donald Trump to head the U.S. central bank, is on track to set a new record of his own, reporting assets worth well over $100 million in new financial disclosures. That would make him the wealthiest Fed chair in history if he is confirmed.
Key developments that could influence markets on Wednesday:
Company earnings:
ASML Holding NV, Bank of America Corporation, Morgan Stanley
Economic events:
France: CPI for March
Euro Zone: industrial production for February, reserve assets for March
Debt auctions:
Germany: 26-year and 30-year government debt