MARKET WRAPS

Stocks:

European indexes were stumbling Wednesday as luxury stocks took a hammering, though hopes for Middle East peace buoyed other corners of the market.

Shares in Hermes and Kering were leading the losses on the Stoxx 600 after both companies posted first-quarter earnings. LVMH had set the tone for the struggling sector at the start of the week by reporting a hit from the Iran war.

At the same time, investors are cautiously optimistic for second-round talks between the U.S. and Iran. Oil prices continued to edge lower .

Trump said he thinks the war is close to over and that Iran wants to make a deal.

Columbia Threadneedle Investments said both sides appeared interested in peace but cautioned that the resumption of normal service in the Strait of Hormuz would take a long time even when a deal is reached.

"When traffic begins to flow we will likely see a fall back in oil prices, but supply stresses will persist as it will take time for oil and gas to reach their final destinations."

Wednesday brings a raft of central-bank speakers. Isabel Schnabel from the European Central Bank and Bank of England Governor Andrew Bailey are due to appear at the Institute of International Finance Global Outlook Forum, along with the Federal Reserve's Michelle Bowman.

Eurozone industrial production figures for February are also out today.

Stocks to Watch

Pernod Ricard was unlikely to disappear and its weakened share price looks like good value, AlphaValue said.

It said a mooted merger with Brown-Forman could be a catalyst rather than a threat.

BP's first-quarter trading update looks better than expected, with the performance of its oil trading and downstream business being the key driver, Citi said.

Economic Insight

ANZ said the Middle East conflict and resulting higher energy prices posed a stagflationary shock for the U.K. economy.

The BOE probably won't hike in response to first-round effects of higher energy prices, adopting a wait-and-see stance instead, according to ANZ.

U.S. Markets:

Index futures were struggling for direction after posting strong gains in recent sessions led by technology stocks.

Investors are set to hear from Bank of America and Morgan Stanley today following a string of big banks' earnings reflected solid U.S. consumer health.

Forex:

The dollar was trading steady against a basket of currencies.

CBA said it wouldn't be a surprise if the two-week ceasefire in the Middle East was extended to accommodate further talks.

Still, the world economy will need to adjust to smaller energy supply , it added.

Bonds:

Treasury yields edged slightly lower in Asian trade, with market sentiment remaining cautiously optimistic about the prospect of a peace deal in the Middle East.

Long-end Treasury yields declined more than short-end yields, causing the curve to flatten.

Beside headlines from the Middle East, Treasury investors will watch out for the Fed's Beige Book.

Eurozone government bond yields fell , tracking Treasury yields.

Coming up today, Italy plans a dual-tranche bond syndication while Germany has a triple-tranche auction of ultra-long Bunds.

German government bond yields reached the lower bound of SEB's targets it had set on March 3 for an "extended conflict" scenario in the Middle East.

"We think the risk of a significant further selloff is declining."

Energy:

Oil prices fell after Trump signaled the possibility of second-round talks with Tehran this week, even as American forces press ahead with a naval blockade on Iranian ports.

"The risk premium at the front of the oil curve has decreased since the ceasefire announcement as the perceived likelihood of a near-term peace deal has increased ," Goldman Sachs said.

XS said crude oil's recent correction reflects investors "transitioning from a state of panic over potential supply chain disruptions to a more cautious and calculated stance ."

Phillip Nova said oil prices were increasingly driven by diplomatic signals .

Metals:

Gold prices eased but remained above $4,800 a troy ounce.

"The retreat in oil prices relieved some of the inflationary pressure that has weighed on the precious metal since the conflict began more than six weeks ago," ANZ Research said.

Recent price moves continued to reflect gold's sensitivity to Middle East developments and broader macro drivers, particularly the dollar and yields.

Copper

Prices rose to a near two-month high on Middle East peace hopes.

BMI Research said the global copper price rally will remain tempered by the U.S.-Iran war, with downside risks prevailing should the conflict re-escalate.

"We still expect the copper market to remain on edge ."

EMEA HEADLINES

Hermes Sales Growth Slows Amid Uncertain Recovery Path for Luxury Sector

Birkin bag maker Hermes reported a slowdown in sales growth for the first quarter as the war in Iran clouds the sector's rebound.

The French company booked revenue of 4.07 billion euros ($4.80 billion) for the first three months of the year, 5.6% higher than in the same period a year earlier excluding currency movements. The rise in quarterly sales showed a downward trend compared with the previous three months, when Hermes booked a 9.8% increase.

Chip-Machine Supplier ASML Lifts Guidance on Strong AI Demand

ASML Holding raised its sales guidance for the year as chip makers continue to plow billions of dollars into its semiconductor-making machines to churn out increasingly advanced artificial-intelligence chips.

The Dutch group, which counts Taiwan Semiconductor Manufacturing Co., Samsung Electronics and Intel among its largest clients, has been a key beneficiary of the AI boom since the 2022 release of ChatGPT ushered in a spending bonanza from companies seeking to harness the technology.

Gucci Owner Kering Logs Lower Sales, But Flags Improving Trends

Kering reported lower sales at the start of the year but flagged improving trends, an encouraging sign for the Gucci owner as it prepares to unveil a new plan later this week aimed at reviving growth.

The Paris-based luxury giant on Tuesday posted first-quarter sales of 3.57 billion euros ($4.20 billion), down 6% from a year earlier in reported terms, but stable on a comparable scope and exchange-rate basis. Analysts had forecast sales of 3.59 billion euros, according to Visible Alpha.

Antofagasta Posts Fall in Copper Production, But Expects Pickup

Antofagasta said first-quarter copper production fell, but that it hasn't experienced any supply disruptions despite higher energy prices, and expects to achieve its full-year guidance as output picks up.

The Chilean copper miner said Wednesday that it produced 143,000 metric tons of copper in the first three months of the year, an 8% decline from the same period a year earlier. Net cash costs fell 30% to $1.08 a pound.

Stellantis Shipments Rise on Strong Growth in North America and Europe

Jeep maker Stellantis reported an estimated 12% increase in first-quarter vehicle shipments, driven by strong growth in North America and Europe.

The company said Wednesday that global shipments-vehicle deliveries to dealers, distributors, or directly from the company to retail and fleet customers-rose to an estimated 1.36 million units.

Eurozone Economy Caught Between Baseline and Adverse Scenarios, ECB's Lagarde Says

The energy-price shock from the Iran war is landing between the European Central Bank's baseline and adverse scenarios, its President Christine Lagarde said Tuesday.

The ECB last month published three scenarios of the impact of the Iran war on the eurozone. The adverse scenario predicts a sharper rise in inflation and lower growth than the baseline, though the impact wouldn't be as pronounced as its severe scenario.

Europe Is Accelerating a NATO Fallback Plan in Case Trump Pulls Out

A fallback plan to ensure Europe can defend itself using NATO's existing military structures if the U.S. departs is gaining traction after getting buy-in from Germany, a long-term opponent of a go-it-alone approach.

The officials working on the plans, which some officials are referring to as "European NATO," are seeking to get more Europeans into the alliance's command-and-control roles and supplement U.S. military assets with their own.

GLOBAL NEWS

Iran Ports Are Quiet as Strait Blockade Holds Up

The blockade of Iranian ports on the Strait of Hormuz held up in its first 24 hours, the U.S. military said Tuesday, and the top diplomat at the United Nations indicated U.S.-Iran peace talks are likely to resume.

On another front in the Middle East, Israel and Lebanon said they have agreed to launch direct negotiations for a comprehensive peace deal, following rare, face-to-face talks in Washington, D.C.

Bessent Pushes Fed to Cut Rates, but Understands War Clouds Picture

Treasury Secretary Scott Bessent on Tuesday said the Federal Reserve needs to cut interest rates, but understands if the central bankers "want to wait for some clarity" given the Iran war. He also thinks the Fed should wait for a new chairman to lead the next cycle.

Bessent touched on the Fed at two Washington talks, WSJ Opinion Live and an event at the Institute of International Finance.

Europe Drafts Postwar Plan to Free Up Hormuz Without U.S.

LONDON-European countries are putting together a plan for a broad coalition of countries to help free up shipping through the Strait of Hormuz, including sending mine-clearing and other military vessels. But the plan would only come after the war and may exclude one country in particular: the U.S.

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April 15, 2026 04:57 ET (08:57 GMT)

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