Global Markets Rise Amid Geopolitical Tensions

Asia-Pacific markets rose on Tuesday, with Japan's Nikkei 225 leading gains after a holiday, despite geopolitical tensions in Iran and Venezuela, and a criminal investigation into US Federal Reserve Chair Jerome Powell. Oil prices increased amid protests in Iran, while US equity futures were flat ahead of consumer inflation data and bank earnings results.

European stocks are expected to open higher on Tuesday, driven by investor attention to geopolitical developments and data. The U.K.'s FTSE index is seen opening flat, while Germany's DAX and France's CAC 40 are expected to rise 0.2%. Investors are weighing the impact of the U.S. Federal Reserve Chair Jerome Powell facing a criminal investigation and escalating tensions in Iran. Meanwhile, Asia-Pacific markets traded higher overnight, and U.S. stock futures ticked lower ahead of consumer inflation data and key bank earnings results.

JPMorgan Chase is set to report its fourth-quarter earnings for 2025 before the market opens on Tuesday. Analysts expect earnings of $5 per share and revenue of $46.2 billion. The bank's performance will provide insight into consumer and corporate health towards the end of last year and guidance on 2026. The banking sector has enjoyed a favorable environment with rebounding Wall Street trading, falling interest rates, and stable consumer credit. Analysts will be keen to hear about the momentum carrying over into 2026, potential cracks in spending, and the strength of Wall Street dealmaking. JPMorgan Chase CEO Jamie Dimon will likely face questions about President Donald Trump's demand to cap credit card rates and the independence of the Federal Reserve. Other major banks, including Bank of America, Citigroup, and Goldman Sachs, are also set to report their earnings this week.

The stock market saw a mixed performance on Monday as investors awaited the release of consumer inflation data and key bank earnings results. Stock futures ticked lower, with Dow Jones Industrial Average futures losing 65 points, or about 0.1%. The consumer price index report due Tuesday is expected to show prices rose 2.7% in the twelve months ending in December. Investors are also watching for JPMorgan's fourth-quarter earnings results set to release before market open Tuesday. Meanwhile, President Donald Trump announced a 25% U.S. tariff rate on any country doing business with Iran, which weighed on bank shares in regular trading. The stock market has largely brushed off Trump's attempts to pressure the Fed, as the central bank cut its benchmark interest rate three times in late 2025 to support its dual mandate.