UK and European equities traded with a firmer tone today, supported by improved risk appetite, stronger technology shares and tentative optimism around diplomatic developments in the Middle East. London participated in the advance, although domestic sentiment remained moderated by softer UK retail sales and ongoing fiscal concerns. Continental markets were helped by gains in semiconductor and luxury names, while falling bond yields offered some support to equity valuations.

US markets opened higher, with the main indices extending recent momentum as investors balanced easing bond yields against persistent geopolitical uncertainty. Sentiment was supported by hopes that diplomacy could reduce the risk premium embedded in energy prices, although the market remains sensitive to developments around Iran and the Strait of Hormuz. Corporate earnings and deal activity also helped sustain a constructive tone, with consumer and selected growth names attracting renewed interest.

Asia-Pacific markets advanced broadly, led by strength in Japan and regional technology shares. The Nikkei reached a record high, while gains were also reported across Hong Kong, mainland China, South Korea, Australia, Taiwan and India. The move reflected a combination of positive global equity momentum, support from technology hardware and semiconductor-related stocks, and improved investor appetite following signs of possible diplomatic progress in the Middle East

Oil prices rose as markets remained cautious over the prospects for a durable breakthrough in US-Iran negotiations. The key issue for energy traders remains the risk of disruption around the Strait of Hormuz, keeping a geopolitical premium in crude despite earlier volatility. The latest move higher suggests investors are not yet prepared to price in a sustained de-escalation, particularly while public comments from Iranian officials continue to indicate a hard negotiating stance.

Gold remained underpinned by the same cross-currents shaping broader markets: geopolitical risk, elevated energy prices and shifting expectations for central bank policy. Safe-haven demand continues to provide support, but the metal’s near-term direction is likely to remain sensitive to real yields, the US dollar and whether oil-driven inflation concerns complicate the outlook for monetary policy.

In UK corporate news, Bodycote was a standout after Apollo made a conditional cash proposal for the London-listed industrial components group. The approach highlights the continued appeal of UK mid-cap assets to private equity buyers, particularly where valuations remain comparatively attractive. The offer places renewed focus on deal activity in the FTSE 250 and may reinforce investor interest in other industrial names seen as strategically valuable or underappreciated by public markets.