Global Markets Rally on Trump-Announced Iran-Israel Ceasefire

Asia-Pacific markets rose on Tuesday following US President Donald Trump's announcement that a ceasefire between Iran and Israel was in effect. Japan's Nikkei 225 climbed 1.17%, South Korea's Kospi jumped 2.71%, and Australia's S&P/ASX 200 traded 1% higher. Hong Kong's Hang Seng index rose 1.91%, and mainland China's CSI 300 was 1.13% higher. The announcement also boosted US futures, with Dow Jones Industrial Average futures adding 134 points, S&P 500 futures gaining 0.4%, and Nasdaq 100 futures rising 0.6%. Oil prices fell over 2% as investors hoped for de-escalation of the Middle East conflict, and cryptocurrencies rallied with Bitcoin rising over 1.65% and Ether jumping over 3%.

European markets are expected to open higher on Tuesday, with the FTSE projected to rise 0.3%, DAX up 1.1%, CAC 40 up 1%, and FTSE MIB up 1%. The Stoxx 600 fell 0.3% on Monday, with losers including Poste Italiane, Pandora, and Novo Nordisk, while Spectris jumped 15.7% after a takeover bid from Advent. Global market sentiment improved after President Donald Trump announced a claimed ceasefire between Israel and Iran, though neither side has confirmed this. The NATO summit is set to begin, focusing on defense spending hikes to 5% of GDP by 2035.

Global equities posted small gains as investors reacted to US President Donald Trump's announcement of a ceasefire timeline between Iran and Israel, and growing signs of fatigue towards his policymaking. The MSCI World index rose 0.24%, while US futures also edged higher. Analysts cited market desensitization to Trump's policy changes and a potential de-escalation in the Middle East as reasons for the muted gains. Some investors believe a ceasefire between Iran and Israel is "the most bullish outcome" for Wall Street, and that US markets should rally. Safe-haven assets saw marginal selling, with gold prices inching lower and US Treasury yields rising slightly.

Stock futures rose on Tuesday after President Donald Trump announced a ceasefire between Israel and Iran on Truth Social. Futures tied to the Dow Jones Industrial Average added 291 points, or 0.68%, while S&P 500 futures gained 0.79% and Nasdaq 100 futures rose 1.06%. The major averages had risen in the previous session as investors looked past Iran's retaliatory strike on a US military base in Qatar, with the Dow rising nearly 375 points and the S&P 500 and Nasdaq Composite gaining around 0.95%. Oil prices fell over 3% in extended trading, and energy was the only sector to end the previous session negative. Traders will be watching Federal Reserve Chairman Jerome Powell's testimony before the House Financial Services Committee, as well as home price data and June's consumer confidence reading.