Tuesday, 02 January 2024 12:17 GMT

Stock Markets Post Sharp Gains on Signals for Ending Iran War


(MENAFN) Asian and European stock markets posted sharp gains Wednesday after U.S. President Donald Trump signaled an imminent end to military operations in Iran, fueling investor optimism across global financial markets.

Speaking at the White House following a presidential decree signing ceremony, Trump indicated that American forces would withdraw from Iran within a matter of weeks — a statement that sent indices soaring from Tokyo to Frankfurt.

"All I have to do is leave Iran, and we'll be doing that very soon, we'll be leaving very soon," Trump said, adding that the pullout would occur in "maybe two weeks, maybe three."

The remarks triggered an immediate market response. By 0745 GMT, the Asia Dow had surged 5.8%, while Japan's Nikkei 225 climbed 5.2% and Hong Kong's Hang Seng advanced 2.2%. Elsewhere across the continent, China's Shanghai index added 1.46%, India's Sensex rose 2.5%, and Singapore's benchmark index gained 1.9%.

European markets mirrored the momentum. The pan-European Stoxx Europe 600 rose 2.2%, while the UK's FTSE 100 added 1.75%. Germany's DAX 40 jumped 2.6%, France's CAC 40 gained 2.2%, Italy's FTSE MIB 30 climbed 2.75%, and Spain's IBEX 35 led regional gains at 2.9%.

The rally follows an already-strong session on Wall Street, where U.S. stocks closed Tuesday with their largest single-day gains since May. The Dow Jones Industrial Average rose 2.49%, the Nasdaq Composite surged 3.83%, and the S&P 500 jumped 2.91%.

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