Financial Market Preview - Wednesday 22-Apr

Good morning and welcome to FactSet's Market Preview. Today is Wednesday, April 22nd, and 2026, and information provided is up to date as of 4 a.m. Eastern Time. S&P futures are up 0.6% as market sentiment improves on the indefinite extension of the ceasefire. Asian equities ended mixed on Wednesday. Gains were seen in Japan, South Korea, and Taiwan as AI-related optimism continued to fuel tech sector rallies. Hong Kong, Australia, and Southeast Asia underperformed. European markets are broadly trading higher in early session. Treasury yields are pulling back, crude oil slightly softer, gold firmer, dollar giving up overnight gains, and industrial metals are firmer. President Trump extended the Iran ceasefire at Pakistan's request, citing internal divisions within Iran's government that are preventing a unified negotiating position. The Pakistan talks have been postponed, with the White House delaying VP Vance's trip and Iranian state media indicating no imminent return to negotiations. Sources indicated Trump is giving Iran's leadership three to five days to consolidate behind a proposal while awaiting Supreme Leader Khomeini's expected response. Key sticking points remain unresolved including uranium enrichment terms HEU stockpile disposition and Strait of Hormuz control Iran has conditioned to resume talks on the U.S., lifting its naval blockade, which Trump has refused to do ahead of Iran, submitting a formal proposal. Contradictory messaging continues to fuel Iranian mistrust. Despite the impasse, markets remain largely sanguine, viewing the ceasefire extension as reducing near-term risk of resumed hostilities. For macro news, economic data releases were relatively light. Japan's March export growth strengthened, driven by a rebound in shipments to the U.S. and China, with semiconductors and electronics components as the primary contributors. South Korea's PPI inflation rose to a four-year high in March, driven by a surge in imported oil costs, raising concerns about consumer price pass-through. BOJ preview commentary increasingly points to a hold decision at next week's meeting as policymakers assess the economic impact of the Iran conflict. In Europe, UK headline CPI came in at 3.3% year over year, in line with expectations and up from 3% prior. Core inflation was slightly below expectations, but also firmer. Policy implications are limited as markets are already pricing in an unchanged BOE decision next week In corporate news Boeing has initiated certification trials for the 737 MAX EAI design fix SpaceX has agreed on terms with Cursor for a potential $60 billion acquisition later this year. TMX Group is nearing a deal to acquire CBOE Australia. For notable earnings, GE Vernova, Philip Morris, AT&T, CME Group, Boston Scientific, Boeing, Moody's, Verteeve Holdings, and Teledyne Technologies are all set to release their earnings this morning. After the close, we have Tesla, IBM, Southwest Airlines, ServiceNow, Texas Instruments, Kinder Morgan, CSX Corp, Las Vegas Sands, and United Rentals. Asian equity markets were mixed Wednesday, with technology-heavy benchmarks outperforming but gains more modest than in recent sessions. The Nikkei 225, Kospi, Tyx, and Shenzhen indices advanced, while Hong Kong and Australia posted sharp losses. Southeast Asia and India were also lower. Taiwan, Japan, and South Korea have recently hit record highs, supported by a strong demand backdrop reinforced by revenue guidance upgrades from TSMC and ASML The multi memory shortage narrative continues to gain traction with expectations of outsized profit growth among memory chip producers prompting strategists to raise Korean benchmark price targets Broader positive sentiment in the technology sector has been underpinned by strong compute demand, optimism around AI capital expenditure monetization, and favorable funding and valuation developments in recent weeks. European equity markets are mostly firmer, with basic resources and oil and gas sectors providing support. A Reuters poll of 62 economists found that the majority expect the BOE to hold rates unchanged throughout 2026 despite elevated inflation. Key concerns center on stagflation risks, with inflation expected to remain elevated while growth risks are skewed to the downside. Most economists anticipate stagnation rather than outright recession, though technical recession risks have been flagged by some. Views on the policy path vary. Former BOE policymaker Saunders suggested rates may need to rise to contain inflation, while Goldman Sachs argued a weak labor market should limit second-round inflationary effects. UBS sees potential for rate cuts beginning as early as November, and Capital Economics believes the BOE would only be compelled to act if inflation reaches 4.5%. Thank you for joining us for the U.S. Market Preview for Wednesday, April 22nd, You can continue to follow today's news in real time with FactSet.