A look at the ‌day ahead in European and global markets from Gregor Stuart Hunter

Global equities are nudging higher with fresh record highs within ​view, after U.S. President Donald Trump said on Tuesday ⁠that talks to end the Iran war could resume in Pakistan ​over the next two days.

Though there’s been no confirmation of the timing from Iran, investor confidence is still intact. The MSCI All-Country World Index rose 0.2% to extend its winning streak ​into a ninth consecutive day ​on Wednesday, while S&P 500 e-mini futures held steady just above the 7,000 mark – a level ​the cash benchmark briefly touched in late January.

Brent crude edged up 0.6% to $95.33 per barrel, after ⁠the U.S. military said its blockade has completely halted economic trade ​going into and out of Iran by sea.

Investors are also weighing up warnings from the International Monetary Fund, which cut its global growth outlook ‌on Tuesday, while some traders warned that complacency may be ‌setting ​in.

Nevertheless, U.S. earnings season has painted a picture of a financial sector profiting from the volatility of the first quarter, with banks reporting booming trading ​revenues even as they sounded a note of caution about the ​ripple impact of higher oil prices on clients.

ASIA LEADS GAINS

There was little such worry in Asian trade, with MSCI’s broadest index of Asia-Pacific shares outside Japan up 1.5%. Korea’s Kospi led gains, tacking on 3% to close in on its previous record. Taiwanese shares rose 1.9% to set fresh all-time ‌highs.

EUROPE MORE GUARDED

Early European trade showed more scepticism. Pan-region futures were ​down 0.1%, German DAX futures slipped 0.1% and FTSE futures were up 0.1%.

Elsewhere, former Federal Reserve ​Governor Kevin Warsh, nominated by President Donald Trump to head the U.S. central bank, is on track to set a new record of his own, reporting assets ​worth ⁠well over $100 million in new financial disclosures. ​That would make him the wealthiest Fed chair in history if he is confirmed.

Key developments that could influence markets on Wednesday:

Company earnings:

ASML Holding NV, Bank of America Corporation, Morgan Stanley

Economic events:

France: CPI for March

Euro ‌Zone: industrial production for February, reserve assets for March

Debt auctions:

Germany: 26-year and 30-year government debt

(Reporting by Gregor Stuart Hunter; Editing by Kim Coghill)

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