On Wednesday, Wall Street saw the S&P 500 rise 1.05% to 7,137.9, the Nasdaq 100 gain 1.73% to 26,937.3, and the Dow Jones advance 0.69% to 49,490, bolstered by the extension of the ceasefire with Iran.

As a reminder, Donald Trump announced earlier this week an indefinite extension of the truce with Iran. Markets interpreted this as a sign of de-escalation, even though Tehran refuses to resume talks with Washington as long as the blockade on Iranian ports remains in place.

Risk appetite returns, says Christopher Dembik

"Equities are navigating by sight due to geopolitical uncertainties. However, in the background, risk appetite is returning," Christopher Dembik at Pictet Asset Management noted this morning.

The strategist highlighted that the VIX (the U.S. market volatility gauge) is now trading below the 20 level, generally considered the threshold between risk-aversion and risk-on phases.

"There are no particular tensions in credit or debt markets. The mid-swap mid cap, used as a benchmark for financing or valuing the debt of mid-sized European companies, has only increased very slightly," he further observed.

"Under these conditions, it is difficult to see central banks overreacting next week by raising rates, especially when the market context does not warrant it," Dembik concluded.

A session packed with macroeconomic indicators...

Several data points scheduled for Thursday will help gauge the impact of the geopolitical situation on the economic outlook, starting with the French business climate index, due shortly before the opening bell.

Market participants will also closely monitor preliminary April PMI readings, first for France and other European countries this morning, followed by the United States this afternoon.

...and corporate earnings

Attention will also turn to the numerous quarterly reports released since yesterday evening, notably from EssilorLuxottica, L'Oréal, Carrefour, STMicroelectronics, Dassault Systèmes, and Renault.

Outside the CAC 40 constituents, companies such as Gecina, Verallia, Ipsen, Sartorius Stedim Biotech, GTT, and ID Logistics have also unveiled their trading updates for the first three months of the year.