UK and European equities traded with a firmer tone as investors responded to signs of possible de-escalation in the Middle East, which helped reverse some of the recent risk aversion that had dominated the end of March. London outperformed alongside the wider continental complex, with cyclicals, travel-related names and technology shares finding support as lower oil prices eased part of the inflation and growth anxiety that had weighed on sentiment.

US markets tone remained constructive after a powerful rebound in the previous session, with investors continuing to rebuild risk exposure on hopes that the conflict-driven energy shock may prove less prolonged than feared. Technology and other growth sectors led the recovery, while falling oil and lower bond yields improved the market’s view of the inflation outlook and reduced immediate pressure on rate expectations.

Asia-Pacific markets posted a strong relief rally, led by North Asia, as investors followed the upbeat lead from Wall Street and welcomed signs that the worst-case scenario for energy disruption might be easing. Japan, South Korea, Taiwan and Australia all participated in the move, helped by the prospect of lower imported energy costs and a broader recovery in global risk appetite.

Oil prices pulled back sharply from the extreme levels seen during March as traders reacted to de-escalation rhetoric and the possibility of a gradual reopening in Middle East energy flows. The move lower offered immediate relief to equity and bond markets, but the oil backdrop remains fundamentally unsettled, supply losses have been significant, shipping through the Strait of Hormuz is still impaired, and official commentary continues to warn that April could prove more difficult for physical balances than March.

Gold remained well supported, showing that defensive demand has not disappeared even as equities rallied. The metal benefited from a softer dollar and the view that, despite better risk appetite, investors still want protection against renewed geopolitical stress, lingering inflation risk and policy uncertainty.

Rightmove was in focus after becoming the target of a large competition lawsuit from estate agents over fees, a development that adds another layer of pressure for a business already operating in a more contested housing and property-services backdrop. More broadly across the UK market, the day’s sector rotation favoured airlines and technology-linked shares, while oil majors and other energy-exposed names lagged as crude retreated.