Markets React: Middle East Tensions and China's Stimulus Drive Global Trends

Global markets were influenced by escalating Middle East tensions and China's stimulus measures. Crude oil prices surged, gold remained high, and the Hang Seng index rose. Meanwhile, European and American financial outlooks are swayed by events in the Middle East and upcoming economic data releases.

The trading community's attention was captured by intensifying hostilities in the Middle East, impacting both European and global markets on Wednesday. Despite these concerns, Hong Kong's benchmark Hang Seng index surged over 4%, driven by China's recent stimulus efforts. Meanwhile, gold prices hovered near record highs, and crude oil continued its upward trajectory.

European stock futures point to a positive opening, even as Australian and New Zealand currencies strengthened, reflecting their economic ties with China. Notably, Iran declared its missile attacks were concluded barring further provocation, but Israel, with strong US backing, committed to a response. This geopolitical tension left little room for distraction in the European market.

In the UK, Prime Minister Keir Starmer met with European Commission President Ursula von der Leyen to discuss trade and security, signifying attempts at resetting EU-UK relations. Meanwhile, the US market braces for critical data releases and Fed decisions, with a looming dock worker strike potentially costing up to $5 billion per day.

(With inputs from agencies.)