By Dow Jones Newswires Staff
U.S. stock futures rallied and bitcoin hit an 11-week high after President Trump said the U.S. will extend its cease-fire with Iran beyond the previously-stated Wednesday evening deadline.
Trump's announcement after markets closed Tuesday encouraged investors to turn again to risky assets, even as the potential for further, more damaging developments in the U.S.-Iran war remains. Iran's Islamic Revolutionary Guard Corps fired on a cargo ship attempting to transit the Strait of Hormuz. Though the country's ambassador to the United Nations signaled Tehran is willing to negotiate with the U.S. once it ends its blockade of the Iranian port, Trump said the blockade wouldn't end until Iran presents a "unified proposal."
Front-month Brent crude oil held below $100, while U.S. Treasury yields and the dollar both edged lower as markets rebound from a dip after news that planned talks between the U.S. and Iran in Islamabad wouldn't go ahead.
--In early European trading, Brent crude was down 0.9% to $97.58 a barrel after briefly rising back above $100 in the previous trading session, while WTI futures fell 1.1% to $88.77 a barrel. "Supply risks persist despite partial geopolitical relief," Zaye Capital Markets' Naeem Aslam said. "Overall, markets are not pricing in a full resolution, but rather a controlled easing of risk, leaving sentiment fragile and highly dependent on further geopolitical developments."
Europe natural gas also fell. The benchmark Dutch TTF front-month contract was down 0.4% to 41.75 euros a megawatt-hour. Europe is benefiting from weaker Asian demand, particularly from India and China.
--U.S. futures for the S&P 500 were up 0.6%, while the Dow Jones Industrial Average rose 0.5% after U.S. stocks slid Tuesday. The tech-heavy Nasdaq gained 0.7% premarket.
Tesla, IBM and semiconductor company Lam Research are set to report earnings after market close. AT&T, Texas Instruments and Boeing are among other company earnings due Wednesday.
--Asian shares were mixed. Japan's Nikkei Stock Average closed 0.4% higher at a record high, supported by chip and tech stocks. South Korea's Kospi closed 0.5% higher at a record of 6417.93. Hong Kong's Hang Seng Index trimmed 1.2%, while the Hang Seng Tech Index fell 1.8%.
--European indexes moved higher. The Europe-wide Stoxx 600 rose 0.4% after closing down 0.9% Tuesday, as technology and energy-sensitive industrial stocks led the continent's risers. ASM International jumped 8% after the semiconductor company logged higher sales on booming AI demand, helping to lift the Dutch AEX, which climbed 0.5%.
The German DAX was 0.5% higher as industrials company Siemens rose 2.4%. In Paris, the CAC 40 gained 0.2% as Schneider Electric climbed 3.4%. The U.K.'s FTSE 100 was flat as gains for precious-metal miners counter a slip in software stocks. The Italian FTSE MIB and Spanish IBEX 35 gained 0.3% and 0.5%, respectively.
--The dollar fell slightly, with the DXY dollar index dropping 0.1% to 98.292.
--U.S. Treasury yields edged lower, with U.S. government bonds supported by Federal Reserve Chair nominee Kevin Warsh's pledge to keep policy independent. In his Senate hearing, Warsh outlined a preference for a smaller Fed balance sheet. "While he did not outline a detailed plan, he suggested that this could be done gradually to avoid market disruption," Macquarie Group's David Doyle said in a note. Warsh's description of the economy as "running close to full employment" implies that labor market slack might not be a reason to embark on further rate cuts, the head of economics said. The two-year Treasury yield fell 1.3 basis points to 3.764% and the 10-year yield was down 0.8 bp at 4.283%
Eurozone government bond yields were marginally lower in opening trade. Impulse from supply will be limited. Only Germany is auctioning bonds on Wednesday, with a total of 2 billion euros in 2041- and 2047-dated Bunds on offer. The 10-year Bund yield fells 0.7 bp to 2.996%
--Bitcoin rose as high as $78,378, LSEG data show, an 11-week high.
--Gold futures rose more than 1% as falling oil prices eased inflation fears. In early European trading, gold was up 1.4% to $4,785.40 a troy ounce. "Trump's extension of the cease-fire reduces the immediate risk of military escalation--and with it the threat of a further inflationary oil-price spike--while also weighing on the dollar," analysts at Saxo Bank said. "Until a clearer path toward a peace deal emerges, gold and silver are likely to remain in competition with the dollar for direction, leaving prices rangebound for now."
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
04-22-26 0437ET
