Investors Steady as Israel-Iran Ceasefire Holds

Emerging market stocks and currencies showed stability on Wednesday as investors cautiously monitored the ongoing Israel-Iran ceasefire, brokered by U.S. President Donald Trump, which brought temporary calm to unsettled markets.

In the Middle East, market responses were varied. Israeli equities nudged up by 0.2%, nearing record highs, although the shekel weakened slightly. Meanwhile, Turkey's lira declined by 0.3%, while Saudi stocks continued their upward trajectory for a fifth session in a row.

Despite initial relief, market analysts, including Giulia Bellicoso from Capital Economics, emphasized a cautious outlook due to potential escalation risks. The ceasefire offered some respite after a 12-day conflict that threatened regional oil transit routes, notably through the strategic Strait of Hormuz.

(With inputs from agencies.)