Nikkei gains 0.4 percent, DAX rises 0.3 percent, S&P 500 futures climb 0.2 percent ahead of Fed decision
Asian and European shares advance while Wall Street futures point to further gains
Global stock markets traded mostly higher on Wednesday, as investors continued to build on this week’s relief rally following signs of easing tensions in the Middle East, while attention shifted toward the U.S. Federal Reserve‘s latest policy decision and the outlook for global interest rates. The improving risk appetite supported equities across Asia, Europe and U.S. futures after major benchmarks climbed to fresh record or multi-month highs earlier this week.
Asia stocks edge higher
Asian markets led the trading day with broad-based gains after Wall Street’s strong overnight performance. Japan’s Nikkei 225 advanced around 0.4 percent to trade near 69,679.50 points, extending recent gains as technology and export-related stocks benefited from a weaker yen and improving global growth expectations. The broader Topix index also moved higher by roughly 0.76 percent. Meanwhile, in Hong Kong, the Hang Seng Index declined about 0.55 percent to trade at 24,359.00, while mainland China’s CSI 300 gained around 0.11 percent as investors assessed the latest economic data and policy support measures. Australia’s S&P/ASX 200 edged about 0.39 percent higher, lifted by financial and mining stocks despite softer commodity prices. South Korea’s Kospi also traded modestly in positive territory, reflecting continued strength in semiconductor shares.
European equities hit high
European equities opened higher after the STOXX Europe 600 reached a fresh record high earlier this week. The pan-European benchmark added around 0.2 percent in early trading, remaining near 639 points as investors continued to welcome progress toward a U.S.-Iran peace agreement that has eased concerns over global energy supplies. Germany’s DAX rose approximately 0.3 percent, France’s CAC 40 gained 0.75 percent, while London’s FTSE 100 added around 0.61 percent despite continued weakness in energy producers following the recent decline in oil prices. Spain’s IBEX 35 remained close to record levels, while Italy’s FTSE MIB also posted gains as banking shares outperformed.
Wall Street gains
U.S. equity futures pointed to another positive session after Wall Street recorded another strong advance. Dow Jones Industrial Average futures were up about 0.64 percent, S&P 500 futures gained roughly 0.21 percent and Nasdaq-100 futures climbed around 0.50 percent, indicating continued demand for large-cap technology stocks. During Tuesday’s session, the Dow Jones Industrial Average closed near 52,000 points, while the S&P 500 finished around 7,511 and the Nasdaq Composite remained near record territory as investors rotated back into growth stocks. Market participants are now focused on the Federal Reserve’s policy announcement for fresh guidance on the path of interest rates through the remainder of the year.
Market sentiment improves
Investor sentiment has improved significantly since the announcement of a preliminary peace agreement between the United States and Iran, which is expected to reopen the Strait of Hormuz and reduce disruptions to global energy supplies. The easing geopolitical backdrop has triggered a sharp decline in oil prices, lowering inflation concerns and improving expectations that central banks may not need to tighten monetary policy as aggressively in the coming months. That combination has provided strong support for global equities, particularly growth-oriented sectors such as technology, consumer discretionary and industrials.
Technology companies continued to lead gains across major markets, with semiconductor manufacturers and artificial intelligence-related firms remaining among investors’ preferred holdings. Financial stocks also strengthened as improving economic sentiment offset concerns over higher borrowing costs, while airline and travel companies extended recent advances thanks to lower fuel prices. Energy producers, however, remained under pressure as Brent crude continued trading well below the highs reached during the recent Middle East conflict.
Currency markets were relatively stable ahead of the Fed decision, while government bond yields moved little as traders waited for updated economic projections from U.S. policymakers.
