MARKET WRAPS
Watch For:
EU flash consumer confidence; U.K. CPI, PPI; trading updates from Danone, Carrefour, ABB, Reckitt Benckiser, Nordea Bank, AkzoNobel, Finnair, EQT, Tele2, Valterra Platinum, Handelsbanken, Bunzl
Opening Call:
European stock futures traded lower early Wednesday. Asian stock benchmarks were mixed; the dollar inched lower; Treasury yields were flat; while oil futures diverged and gold strengthened.
Equities:
Stock futures point to a lower open in Europe, after the White House paused plans to send Vice President JD Vance to Pakistan following Tehran's decision to hold its negotiators back at the last minute.
President Trump then extended the cease-fire, as investors grappled with how long the Middle East conflict might continue. "Both [the] U.S. and Iran may be trying to shore up leverage and playing a game of who blinks first," OCBC said.
Forex:
The Senate confirmation hearing for Kevin Warsh, President Trump's nominee for Federal Reserve chair, has wrapped up. But the uncertainty around the future of the Fed's leadership risks igniting the sell America trade, said Joe Capurso, head of global macroeconomics at CBA.
With Warsh yet to be confirmed as the new Fed chair, the focus is on Republican Senator Thom Tillis, who opposes the confirmation and will continue to do so until the Justice Department drops its investigation into current chair Jerome Powell. Everything will come to a head on May 15 when Powell's term ends, says Capurso. The uncertainty for markets could weigh heavily on the U.S. dollar.
Bonds:
Inflation is likely to be softer than markets expect, creating an opportunity to invest in short-term Treasurys, Morgan Stanley's Vishal Khanduja said.
"Inflation from a commodity-based supply-side shock in a developed country like the U.S., which is a net exporter of oil, should not be that much of a worry," he said. Khanduja has increased allocation in the front end, betting on up to two interest rate cuts by the Fed this year. Markets are mostly pricing no cuts in the next 12 months.
Energy:
Although Trump extended the cease-fire with Iran, he added that the U.S. will continue the blockade of the country's ports until Tehran offers "a unified proposal."
The Mideast conflict and the "resulting closure of the Strait of Hormuz have led to a shortage of supply on the oil market," said Carsten Fritsch, commodity analyst at Commerzbank Research.
Metals:
Gold edged higher, after Trump extended the cease-fire with Iran. He didn't specify an end date for the extension of the cease-fire, which had been due to expire Wednesday evening. Trump's latest announcement has led to a "very modest reversal of prior asset moves," said Gavin Friend, senior markets strategist at NAB.
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Copper edged higher, and ANZ Research said that they expect prices to stay range-bound in the near term. Restocking in China and declining inventories are cushioning the downside, while upside appears capped in a risk-off scenario if economic growth falters in the wake of the Middle East conflict, ANZ said.
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Iron ore rose in early Asian trading. Market sentiment improved on restocking in China ahead of the Labor Day holiday and a recent rebound in the country's steel output, ANZ Research analysts said.
However, supply concerns are emerging despite strong demand, with fuel shortages linked to the Iran conflict already affecting mining operations in Australia and Brazil, ANZ added.
TODAY'S TOP HEADLINES
U.S., Iran Delay Talks in High-Stakes Game of Chicken
As negotiations with Iran broke down Tuesday before they had even begun, President Trump asked aides whether the U.S. should resume attacks on the country, according to U.S. officials.
Just hours earlier, White House officials had been optimistic that Vice President JD Vance, set to depart for Islamabad Tuesday, would be able to strike a deal with Iran and get something in writing, unlike his trip to Pakistan two weeks prior, a U.S. official said. Air Force Two sat idle most of the day at Joint Base Andrews in suburban Washington awaiting Vance.
Warsh Pledges Independence at Fed Hearing
President Trump's pick to lead the Federal Reserve, Kevin Warsh, told senators Tuesday that he would chart a sharp departure from the central bank's recent approach while promising to maintain institutional independence from a president who has repeatedly voiced his preference for looser monetary policy.
"The president never asked me to predetermine, commit, fix, decide on any interest rate decision in any of our discussions, nor would I ever agree to do so," Warsh said at his confirmation hearing on Capitol Hill.
U.S. Blocks Iraq's Dollar Shipments to Squeeze Its Iran-Backed Militias
WASHINGTON-The Trump administration has suspended U.S. dollar shipments to Iraq and frozen security cooperation programs with its military, escalating the pressure on Baghdad to dismantle powerful Iranian-backed militias, said Iraqi and U.S. officials.
A cargo-plane delivery of nearly $500 million in U.S. banknotes, the proceeds from Iraqi oil sales from Federal Reserve Bank of New York accounts, was blocked recently by Treasury Department officials because of U.S. concerns about the militias, some of the officials said.
Deutsche Lufthansa to Cancel 20,000 Short-Haul Flights to Save Jet Fuel
Deutsche Lufthansa will cancel some European routes and 20,000 short-haul flights scheduled until October in a bid to save jet fuel, as airlines struggle with potential shortages and higher prices due to the war in Iran.
The German group said Tuesday that the flights canceled are operated by several of its airlines, mostly its regional carrier CityLine, and will equal a 1% reduction in its passenger capacity.
T-Mobile and Germany's Deutsche Telekom Weigh Combination
T-Mobile US and its majority owner, Germany's Deutsche Telekom, are discussing combining to create a more streamlined telecom behemoth, according to people familiar with the matter.
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Expected Major Events for Wednesday
04:30/NED: Apr Consumer confidence survey
04:30/NED: Mar House Price Index
05:00/FIN: Mar Labour force survey, incl unemployment
06:00/UK: Mar Producer Price Index
06:00/UK: Mar CPI
06:00/DEN: Apr Consumer expectations
06:00/SWE: Mar Labour Force Survey
06:00/DEN: Apr Business tendency survey
08:00/ICE: Mar PPI
08:30/UK: Feb UK House Price Index
09:00/BEL: Apr Consumer Confidence Survey
09:00/EU: Annual General government deficit and debt - 1st notification
11:00/TUR: Turkish interest rate decision
14:00/EU: Apr FCCI Flash Consumer Confidence Indicator
23:01/UK: BRC Consumer Sentiment Monitor
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(END) Dow Jones Newswires
April 22, 2026 00:00 ET (04:00 GMT)
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