Asian markets get a lift from Nvidia and Middle East signals
The DAX may start the session slightly lower after yesterday's gains, but the wider tone has been supported by two important overnight signals. Asian equities reacted positively to signs of possible de-escalation in the Middle East and to Nvidia's stronger-than-expected quarterly results.
Japan also had a local support factor, with a better trade balance helping the Nikkei. In South Korea, sentiment improved further after Samsung reached an agreement with its union, while semiconductor shares more broadly received another boost from Nvidia's update.
Lower oil prices ease one pressure point
The source notes that the US appears to have moved closer to a possible agreement with Iran, with Pakistan, acting as intermediary, expecting a deal to be reached soon. Several ships have also been able to pass through the Strait of Hormuz without incident.
That matters for equity markets because oil prices have fallen back as the immediate supply-risk premium has eased. Lower crude prices do not remove the geopolitical risk, but they do reduce one of the clearest inflationary pressure points facing European stocks.
The DAX rally may pause after recent gains
After the recovery rally of recent days, the DAX may have already priced in a fair amount of optimism around a possible US-Iran deal. That leaves the index vulnerable to a more cautious open, even though the broader backdrop is not uniformly negative.
