European stocks are set to rise on Wednesday as oil prices trade lower on renewed hopes of a negotiated settlement to the Iran war.
London’s FTSE 100 looks set to open 1% higher, bouncing back from heavy losses on Tuesday, according to IG data. France’s Cac 40 and Germany’s Dax are on course to rise 0.8%.
The provisional moves upward after President Donald Trump said he is pausing “Project Freedom,” the U.S. plan to “guide” ships through the Strait of Hormuz. In a Truth Social post, he cited “the fact that Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran,” as a driver behind the decision.
Iran’s foreign minister Abbas Araghchi met Chinese foreign minister Wang Yi in Beijing on Tuesday, according to state media. China has been called upon by Trump’s advisors to pressure Iran into re-opening the Strait of Hormuz, the vital shipping route for oil and gas.
Markets are set to bounce back from Tuesday’s volatility, as a fragile ceasefire between the U.S. and Iran appeared to be close to collapse after the United Arab Emirates came under attack from Iranian drones and missiles, and the White House said it sank Iranian boats in the Strait of Hormuz.
Overnight, South Korea’s Kospi index advanced 6.5% to scale a new peak, topping 7,000 as it builds on gains of more than 70% this year so far.
Index heavyweight Samsung Electronics reached a record high, rising over 15% to exceed $1 trillion in market capitalization. SK Hynix also reached an all-time high, gaining more than 10%.
Elsewhere on Wednesday, investors in Europe will be monitoring earnings from Novo Nordisk, Ørsted, and Flutter.
— CNBC’s Justina Lee also contributed to this report.
