UK and European equities traded with a firmer tone, helped by a sharp upswing in the commodity complex and renewed demand for energy and materials names. In London, heavyweight miners and oil majors led the advance as investors reacted to rising geopolitical risk premia in crude and ongoing strength across key industrial metals, while the broader region followed with gains across cyclical pockets as the dollar softened and risk appetite improved.

US was more reserved, with leadership concentrated in growth and select tech linked areas even as broader breadth remained mixed. The S&P moved to another record, supported by continued enthusiasm around AI infrastructure and adjacent supply chains, while investors balanced strong corporate momentum against the next leg of rate expectations and the policy backdrop.

Asia Pacific markets were mixed overnight, with modest gains in Hong Kong and mainland China offset by softer trade in Australia and a pronounced sell-off in Indonesia. Sentiment in the region reflected a familiar push and pull between supportive risk appetite in North Asia and more idiosyncratic concerns in selected emerging markets, with investors remaining sensitive to global index-provider commentary and the direction of commodities.

Oil strengthened materially, with prices lifting to their highest levels in several months as traders repriced Middle East risk amid heightened tensions between the United States and Iran and renewed focus on potential disruption risks around critical shipping routes. The move was reinforced by a weaker dollar, which provided an additional tailwind to dollar-priced commodities and supported energy equities across Europe.

Gold extended its surge to fresh record territory as safe-haven demand intensified alongside geopolitical unease and a softer dollar backdrop. The rally was echoed across parts of the broader precious-metals complex, reinforcing the market’s preference for defensive hedges even as equities remained underpinned by sector-specific growth themes.

AstraZeneca announced a major multi-year investment programme in China spanning manufacturing and research and development, underlining the strategic importance of the market to the group and reinforcing its commitment to expanding capabilities in next-generation therapies.

EasyJet pushed back strongly against proposed European changes around cabin baggage allowances, arguing the measure would likely feed through into higher fares and operational frictions, keeping the sector’s cost-and-capacity debate front and centre.