Ceasefire Sparks Global Market Rally

Global markets rallied sharply on Wednesday morning following the announcement of a two-week ceasefire between Washington and Tehran. This easing of tensions triggered a relief rally in equities, with the FTSE 100 rising around three per cent in early London trading.

The pan-European STOXX Europe 600 advanced nearly four per cent, while Germany's DAX climbed five per cent. Asian markets had already recorded strong gains overnight, with South Korea's Kospi and Japan's Nikkei 225 rising by 7.7 per cent and 5.45 per cent respectively.

The ceasefire also prompted a reassessment of interest rate expectations across markets, with traders now expecting just one rate increase from the Bank of England this year, likely in September, compared to previous forecasts of two to three rises.