Finance
Morning Bid: April Fools Rush In
Published by Global Banking & Finance Review®
Posted on April 1, 2026
3 min readLast updated: April 1, 2026
Add as preferred source on GoogleGlobal Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on April 1, 2026
3 min readLast updated: April 1, 2026
Add as preferred source on GoogleMarkets are rallying on hopes that the Iran war could end in two to three weeks, as President Trump signals de-escalation; Asia shares surge, aided by strong South Korean export data and upbeat manufacturing PMI readings, while broader futures and bond markets advance.
A look at the day ahead in European and global markets from Gregor Stuart Hunter:
De-escalation hopes for the Iran war are spurring a rally in stocks and bonds, but - drawing attention to today's date - will the market turn out to have fooled itself again?
Equities are surging after U.S. President Donald Trump said the United States could end its military attacks on Iran within two to three weeks and that Tehran did not have to make a deal as a prerequisite for the conflict winding down. MSCI's broadest index of Asia-Pacific shares outside Japan took heart and soared 4.3%, snapping a four-day losing streak and putting the benchmark on track for its best one-day return since the post-Liberation Day rebound on April 10.
South Korea's Kospi is leading gains, surging as much as 7.7%, after Korean exports soared in March, smashing market expectations. A separate PMI showed the country's factory activity expanded at the strongest pace in more than four years in March, led by semiconductor demand and new product launches.
Other export-oriented markets in the tech supply chain such as Japan and Taiwan are not far behind. Data showed Japanese companies' sentiment heated up in March.
The rally has so far shrugged off a report in the Wall Street Journal that the UAE may enter the conflict and is lobbying for a UN Security Council Resolution to authorise it to take part in military action to force open the Strait of Hormuz. U.S. Foreign Secretary Marco Rubio also said Washington will have to reexamine its relations with NATO after the war ends.
Trump provides an update on Iran in an address to the nation at 9 p.m. on Wednesday. S&P 500 e-mini futures are up 0.2% so far on Wednesday.
Wall Street stocks soared on Tuesday, as traders bet on the potential off-ramp to the war, though oil markets were more subdued as trading resumed in Asia. Brent crude futures moved 1.2% higher, retracing some of the previous day's decline.
In early European trades, pan-region futures were up 1.8%, German DAX futures were up 1.8%, and FTSE futures were up 0.9%.
Elsewhere, Greece will rejoin MSCI's developed market index from May next year, marking a milestone in its recovery 13 years after it was booted out of the benchmark.
Key developments that could influence markets on Wednesday:
Economic events:
France: HCOB Manufacturing PMI for March
Germany: HCOB Manufacturing PMI for March
United Kingdom: S&P Global Manufacturing PMI and BBA Mortgage Rate for March
Euro zone: HCOB Manufacturing Final PMI for March, unemployment rate for February
US: Retail sales for February, ISM manufacturing PMI for March, weekly EIA inventories
Debt auctions:
Germany: 7-year government debt
(Editing by Sam Holmes)
European markets are rallying due to hopes of de-escalation in the Iran conflict, following statements from U.S. President Donald Trump that suggest tensions with Iran may ease soon.
MSCI's Asia-Pacific index surged 4.3%, and South Korea's Kospi led gains with a 7.7% rise. European stock futures were also notably higher.
Positive manufacturing PMI data from South Korea, Japan, and Germany, as well as Korean export figures, helped boost investor sentiment in export-driven markets.
Key economic reports include manufacturing PMIs for France, Germany, the UK, Euro zone, and US, as well as US retail sales and German debt auctions.
Oil markets were more subdued compared to stocks, but Brent crude futures rose 1.2%, partially reversing previous losses.
Explore more articles in the Finance category
