Global Markets Mixed on Ceasefire Hopes

Asia-Pacific markets traded mixed on Wednesday as investors weighed a potential ceasefire between Israel and Iran, and commentary from the U.S. Federal Reserve. Australia's inflation rate hit a 6-month low, and the Reserve Bank of Australia is expected to cut interest rates in July. China tech stocks rose after Beijing approved new game licenses, and oil prices climbed over 1% after two sessions of declines.

European markets are expected to open positively on Wednesday, June 25, 2025, with futures data indicating a flat or slightly higher start for major indices such as the FTSE, DAX, CAC 40, and FTSE MIB. The optimism follows a rise in global market sentiment on Tuesday due to hopes that a ceasefire between Iran and Israel might hold, despite initial violations. Traders are also reacting to comments from U.S. Federal Reserve Chair Jerome Powell, who emphasized the Fed's commitment to controlling inflation and maintaining steady interest rates until more economic clarity is achieved. Key events to watch include the ongoing NATO summit in the Netherlands, where a joint statement on increasing defense spending is expected, and the release of French consumer confidence and Spanish GDP data.

The British pound has rallied to its highest level in almost four years against the US dollar, with some analysts attributing its strength to dollar weakness rather than sterling's inherent value. Experts are divided on the outlook for the pound, with some forecasting further gains and others predicting a decline. Factors influencing the pound's trajectory include US economic performance, monetary policy decisions, and geopolitical developments.

The US stock market was near flat early on Wednesday as investors awaited data on new home sales and Federal Reserve Chair Jerome Powell's testimony before the Senate Banking Committee. The S&P 500 had jumped over 1% on Tuesday as oil prices fell following a ceasefire between Iran and Israel. The Nasdaq 100 notched a record close on Tuesday, marking its first all-time closing high since February. Investors are watching quarterly reports from General Mills, Paychex, and Micron.