Markets rebound as Israel signals Lebanon talks; oil rally cools

Friday, 10 April 2026 00:06 - - {{hitsCtrl.values.hits}}

Global equities regained ground on Thursday as investors reacted to signs of possible de-escalation in the Middle East, while oil prices pared earlier gains and haven demand eased.

MSCI’s global equities gauge reversed earlier losses to trade higher after Israel indicated it was open to peace talks with Lebanon, raising hopes for a fragile regional truce. The shift in sentiment followed comments from Israeli Prime Minister Benjamin Netanyahu, who said he had instructed officials to begin negotiations with Lebanon, including discussions around the disarmament of Iran-linked Hezbollah.

The announcement helped steady markets after a volatile start to the session. Wall Street stocks turned positive, reversing earlier declines sparked by Israeli air strikes in Lebanon that reportedly killed more than 250 people. Investors had feared an escalation could undermine US President Donald Trump’s ceasefire efforts with Iran, particularly after Tehran signalled Lebanon should be included in any truce.

Oil prices, which had surged earlier amid concerns over supply disruption and limited signs Iran would reopen the Strait of Hormuz, retreated from session highs. US crude, after briefly topping $102 a barrel, was up 3.4% at $97.71 in afternoon trading, while Brent crude eased to $95.50, up 0.8% on the day.

On Wall Street, the Dow Jones Industrial Average rose 0.59% to 48,191.74, the S&P 500 gained 0.63% to 6,825.27 and the Nasdaq Composite climbed 0.76% to 22,807.95. MSCI’s all-country world index rose 0.27%, while Europe’s STOXX 600 closed 0.15% lower.

Asian markets pulled back following sharp gains in the previous session. Japan’s Nikkei fell 0.7%, South Korea’s benchmark dropped 1.6%, and MSCI’s Asia-Pacific ex-Japan index slipped 0.7%.

US Treasuries rallied modestly, with the benchmark 10-year yield falling 2.2 basis points to 4.269%, while the 30-year yield edged down to 4.8755%. The policy-sensitive two-year yield declined 4.4 basis points to 3.75%.

The dollar weakened, with the dollar index falling 0.37% to 98.69. The euro rose 0.43% to $1.1712, while the dollar edged 0.09% higher against the yen.

Precious metals advanced, with gold climbing 1.63% to $4,793.07 an ounce and silver gaining 2.66% to $76.09.

Investors remain focused on inflation risks, with oil prices still elevated relative to pre-conflict levels. US consumer price index data for March is due on Friday, while data released on Thursday showed the core PCE index rose 2.8% year-on-year in February, in line with expectations. A separate report indicated fourth-quarter US economic growth slowed to 0.5%, below forecasts of 0.7%.