LGT Navigator

Markets stabilise as oil retreats, CPI in focus

Global equity markets were steadier midweek as oil prices pulled back from recent highs, easing some of the anxiety around the US-Israeli conflict with Iran. European stocks rallied strongly on Tuesday, with cyclical sectors leading gains after signals from Washington that the war could end soon, while US indices ended slightly lower amid continued volatility in energy markets and mixed corporate news. In Asia, shares were trading higher on Wednesday, supported by softer crude and stable gold prices. Investors are now turning their attention to key inflation releases, with German and US Consumer Price Index data due later on Wednesday likely to shape expectations for the Federal Reserve and European Central Bank policy paths.

  • Date
  • Auteur Shane Strowmatt, Senior Investment Writer
  • Temps de lecture 5 minutes

Investor
© Shutterstock

Asian stock markets posted modest gains on Wednesday as a retreat in crude prices from recent highs helped offset persistent worries over the US-Israeli conflict with Iran. Oil prices extended losses on Wednesday after reports that the International Energy Agency is considering the largest strategic stock release in its history to counter potential supply disruptions. Brent crude oil futures were hovering below USD 88 per barrel and West Texas Intermediate (WTI) under USD 84. Meanwhile, Gold was also stable, near USD 5200 per ounce on Wednesday. In Asia, Japan’s Nikkei 225 rose by 1.5%, while South Korea’s KOSPI jumped nearly 1.4% after a strong prior session. Australia’s S&P/ASX 200 was up 0.6%, Hong Kong’s Hang Seng Index was trading only slightly higher, and mainland China’s CSI 300 gained 0.6%.

US equities edge lower on oil jitters

US stock indices slipped on Tuesday in volatile trading, as investors monitored the Iran conflict and a sharply fluctuating oil price. The Dow Jones Industrial Average closed 0.1% lower at 47,706.51 points, the broad S&P 500 fell 0.2% to 6781.48 points and the Nasdaq 100 fell marginally to 24,956.47 points, erasing part of Monday’s gains that had followed comments by US President Donald Trump suggesting the Middle East war was close to ending. Sentiment was unsettled after a later-withdrawn social media post by US Energy Secretary Chris Wright about a US Navy tanker escort in the Strait of Hormuz, which was officially denied by the White House. Among individual stocks, Biontech slumped almost 18% after reporting a multibillion loss for 2025 and announcing that founders Ugur Sahin and Özlem Türeci will leave to start a new mRNA-focused biotech company.

European stocks rebound on Iran hopes

European equity markets rebounded on Tuesday after early-week losses, supported by hopes that the Iran conflict could ease following signals from US President Donald Trump that the war may end soon. The euro-area benchmark Euro Stoxx 50 rose 2.7% and Switzerland’s SMI added 0.4%. Gains were broad-based across sectors, with banks, tourism, commodities and luxury groups such as Kering and Richemont outperforming, while defensive food stocks lagged and Lindt & Sprüngli slumped about 10% after issuing a cautious outlook; Prosus led the Euro Stoxx 50 higher with a 9.6% jump, tracking a strong rise in Chinese tech group Tencent after it launched a new AI tool. In macroeconomic data, German exports of goods rose 0.6% year-on-year in January, while imports fell 4%, according to data released on Tuesday by the Federal Statistical Office. Germany's DAX gained 2.4% on Tuesday.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Henkel.

Economic data in focus: German Consumer Price Index (08:00), Spanish retail sales (09:00) and US Consumer Price Index (13:30).

LGT helps you make informed investment decisions

Global economic and market trends at a glance

You can also follow us on Facebook or LinkedIn – or visit Insights and discover interesting background articles. If you have questions, a consultant from the bank will be happy to help you.

Imprint
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.