Investors Eye Ceasefire as Market Optimism Soars

Markets experienced a modest uptick on Wednesday as the recent ceasefire between Israel and Iran encouraged investors to reenter riskier assets, dampening immediate energy shock concerns. Despite geopolitical uncertainty, confidence in market stability boosted stock performance globally.

The U.S. dollar struggled, nearing a four-year low against the euro, accompanied by declining two-year U.S. Treasury yields as inflationary pressures ebbed with lower oil prices. Although tensions persist, Israel's alert on potential retaliatory action has not deterred investor optimism.

In a global stock market boost, Japan's Nikkei and Hong Kong's Hang Seng posted gains, as did European indices. Meanwhile, U.S. macroeconomic data suggested weaker growth, possibly prompting Federal Reserve rate cuts, further influencing market expectations and stabilizing crude oil prices at $68.43 per barrel.

(With inputs from agencies.)