Oil prices retreated and global stock markets reached record highs on Wednesday after U.S. President Donald Trump hailed what he described as 'great progress' toward a final agreement with Iran. Brent crude futures fell nearly 2% to $107.7 a barrel, while the dollar weakened against a basket of major currencies.
Market Reactions
MSCI's All-Country World Index rose 0.56% to a new record, while the broadest index of Asia-Pacific shares outside Japan initially surged 2.8% before trimming gains to a slight dip. South Korea's Kospi jumped nearly 8% through the 7,000 mark for the first time, driven by a 15% surge in Samsung Electronics, which pushed its market value above $1 trillion. Japan's Nikkei added 0.4%, Hong Kong's Hang Seng rose 0.8%, and China's CSI 300 and Australian markets gained 1.3% each.
Wall Street and Tech
Wall Street also hit fresh all-time highs, with the S&P 500 up 0.8% and the Nasdaq Composite gaining 1%, fueled by AI-driven trades. Chris Weston, head of research at Pepperstone in Melbourne, noted that investors continued to pile into technology stocks, particularly Apple and memory chip companies.
Trump's Announcement
Trump announced on social media that he was pausing 'Project Freedom,' a U.S. initiative launched Monday to guide stranded vessels out of the Strait of Hormuz, but stressed that the blockade of Iranian ports would remain. He cited requests from Pakistan and other nations, as well as military success against Iran and progress toward a complete and final agreement with Iranian representatives. Iran has not yet commented.
Upcoming Data
Investors are now looking ahead to eurozone and UK services PMIs for April, as well as U.S. ADP employment data, which could provide further direction for markets.
