Global markets showed cautious optimism on Friday, with oil prices edging higher and equities posting modest gains ahead of planned talks between the United States and Iran in Islamabad aimed at securing a lasting ceasefire.
Investor sentiment remained steady despite ongoing geopolitical uncertainty, as a two-week truce between the two sides appeared increasingly fragile. Concerns intensified after Israeli strikes in Lebanon earlier in the week raised doubts about the stability of the ceasefire.
The Strait of Hormuz, a critical route for global oil shipments, remained largely closed under Iranian control, adding to supply concerns and supporting oil prices. Brent crude rose 0.8 percent to $96.71 per barrel, while US benchmark crude gained 0.4 percent to $98.60. Analysts said prices are unlikely to return to pre-conflict levels, even if hostilities ease.
Talks scheduled for Saturday in Islamabad are expected to be led by US Vice President JD Vance, with the goal of negotiating a more durable ceasefire. At the same time, Benjamin Netanyahu said he had authorised separate discussions with Lebanon, which analysts view as a key factor in stabilising the broader situation.
In Europe, stock markets opened mostly higher. Germany’s DAX and France’s CAC 40 both rose more than 0.5 percent, while the pan-European Euro Stoxx 50 gained 0.7 percent. London’s FTSE 100 slipped slightly in early trading.
Corporate updates also influenced trading. Porsche AG reported a 15 percent drop in first-quarter sales, citing weaker demand in China, and warned of further declines. Its shares dipped shortly after the market opened.
In contrast, TSMC posted strong results, with March sales rising more than 45 percent year-on-year and quarterly revenue increasing by over 35 percent. Its stock rose 2.3 percent.
Asian markets followed a similar upward trend, supported in part by lower-than-expected inflation data from China. Major indices in Tokyo, Seoul and Hong Kong recorded gains, while Australia’s market edged lower. Shares of Fast Retailing, the parent company of the Uniqlo brand, surged after it raised its profit outlook.
Attention also turned to upcoming US inflation data for March, which analysts expect to show a notable increase due to rising fuel costs since the conflict began in late February. A higher reading could influence expectations around interest rates and monetary policy.
In bond markets, yields moved higher, reflecting ongoing uncertainty. The US 10-year Treasury yield rose to 4.3 percent, while European government bond yields also climbed.
Meanwhile, precious metals declined, with gold and silver prices falling, and the US dollar strengthened slightly against major currencies.
Market participants are closely watching developments in Islamabad, as the outcome of the talks could shape energy markets and global financial conditions in the weeks ahead.
