LONDON: Stock markets advanced cautiously Thursday (Apr 16) on expectations that a Mideast ceasefire would soon let oil and gas tankers resume transit through the Strait of Hormuz, easing inflation pressures that have upended economies worldwide.
Signs of fresh talks aimed at ending the war launched by the United States and Israel against Iran have pushed stock indexes to all-time highs, suggesting investors expect a quick economic rebound from the conflict.
European stocks ended largely just in the green, with London and Frankfurt adding a little shy of 0.5 per cent on the day while Paris slipped slightly.
Two hours into Wall Street trading, the Dow Jones was up just 0.1 per cent at 48,499.95 points, with the broader-based S&P 500 adding 0.2 per cent, though the tech-heavy Nasdaq was off 0.1 per cent.
The Tokyo stock market earlier reached a record high, following all-time peaks for key US indexes on Wednesday as investors cheered healthy earnings for American blue chips despite surging oil prices and rising inflation overall.
Global stock markets “have staged one of the fastest recoveries in recent memory”, said Matt Britzman, senior equity analyst at Hargreaves Lansdown.
At the same time, “oil prices remain elevated … as investors look towards a possible extension of the ceasefire between the US and Iran while weighing the chances of a broader agreement that could ultimately reopen the Strait of Hormuz”, he said.
Around 1550 GMT, main benchmark Brent North Sea Crude had risen 3.1 per cent to US$97.90, while West Texas Intermediate was up 2.2 per cent at US$93.26 a barrel.
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