Equity Market Updates
Market Daily
22/04/2026
Macro Update:
Market concerns over ceasefire met with TACO Tuesday!
Market optimism swung lower on Tuesday as the initial hopes for a diplomatic breakthrough between the US and Iran faded. Brent crude surged toward USD 99 per barrel, driven by concerns that Iran may not join scheduled peace talks before today’s ceasefire deadline. US Vice President JD Vance’s trip for Iran talks in Pakistan was paused due to Tehran’s lack of commitment. Crucially following the closing bell, President Trump extended the US ceasefire with Iran, which he previously mentioned will not happen. He said Tehran’s government was “seriously fractured" and that the truce would remain in place until a “unified proposal” to end the conflict permanently end the conflict is submitted by Iranian leaders. This new development should help alleviate some market anxiety in the near term, albeit volatility may remain.
Additionally, investors continue to closely monitor the Senate confirmation hearing for Kevin Warsh as the next Fed Chair. Warsh attempted to soothe markets by reiterating a commitment to Fed's independence and a "strictly independent" rate path. He also mentioned that the Federal Reserve requires significant changes to avoid repeating past mistakes on inflation, calling for a regime shift in how policy is conducted, including a new inflation framework. On the US interest rate path, we continue to see zero cuts for the rest of the year.
Main Upcoming Macro Indicators
Energy was the only positive sector among US equities yesterday amid uncertainties surrounding US and Iran peace negotiations.
Within the US, we maintain relative preference towards healthcare and industrials.
UnitedHealth (UNH US)
Shares of UnitedHealth rallied by almost 7% on Tuesday after it posted Q1 earnings and revenue that blew past Wall Street expectations. The company also boosted its outlook for the year, a sign that it is making progress toward rebuilding credibility with investors after a collapse a year ago. Looking ahead, UnitedHealth aims to buy back at least USD2bln of its stock by the end of Q2.
MARKET CONSENSUS: 22 BUYS, 8 HOLDS, 1 SELL, AVERAGE TP USD367.35
General Electric (GE US)
Shares of General Electric dropped by -5.6% on Tuesday after the company’s warning of potential disruption due to the Iran war overshadowed solid Q1 results. GE maintained its guidance for 2026 and expects EPS to trend toward the higher range of USD7.1 and USD7.4. The figure now assumes elevated oil prices through Q3 and a reduction in global GDP estimates.
MARKET CONSENSUS: 22 BUYS, 2 HOLDS, 2 SELLS, AVERAGE TP USD347.22
Airbus (AIR FP)
Airbus announced on Tuesday that it will acquire French cybersecurity company Quarkslab as it continues to boost its security credentials. Quarkslab was founded in 2011 and has roughly 100 employees. It develops solutions that help protect critical assets, data and users from cyberattacks. The transaction is expected to close before the end of 2026.
MARKET CONSENSUS: 21 BUYS, 9 HOLDS, AVERAGE TP EUR211.08
Rio Tinto (RIO LN)
Rio Tinto warned on Tuesday of limited visibility on the effects of the war in the Middle East on its supply chains in the second half of 2026. The company cited jet fuel and diesel shortages as a key risk to operations, although pointed to a resilient cost position due to its scale and global supply-chain leverage.
MARKET CONSENSUS: 9 BUYS, 15 HOLDS, 1 SELL, AVERAGE TP GBp7320.87
Earnings Announcements
US Market
Boeing, GE Vernova, Texas Instruments, ServiceNow, Lam Research, Tesla, IBM
European Market
ASM International
HK - China Market
China Mobile
Global Indices Changes (%)
Fixed Income Market Updates
Bond markets held steady, shaking off geopolitical concerns as investors focused on pockets of opportunity rather than broad-based caution. While US and Iran negotiations kept some traders on the sidelines, the mood was far from gloomy, buyers stepped in selectively especially in Asia, where credit spreads tightened modestly. We are watching whether this quiet resilience turns into a springboard for further gains or if profit-taking creeps in after last week’s strong run.
European Bank Coco
European bank Coco bonds saw a mixed session, with Asian investors chasing USD AT1 while EUR AT1 faced mild profit-taking. Prices generally went up, but the real story was the regional divide: retail investors’ demand from Asia was strong, while institutional players in Europe stayed cautious. With credit spreads still tight, we anticipate sideways trading unless fresh catalysts—like a break in geopolitical tensions—spark a clearer direction.
Asia Investment Grade (IG)
Asia IG bonds had another solid day, with China’s tech and financial sectors leading the charge as buyers chased laggards like Meituan. Korean issuers also saw steady demand, particularly for floating-rate notes, while Indonesian sovereign bonds held firm despite some offshore selling. The technical backdrop remains supportive. Overall, new bond supply is scarce, so we expect IG bonds to stay strong —unless a fresh wave of risk aversion derails the momentum.
Asia High Yield (HY)
Asia HY bonds ticked slightly higher, driven by real-money demand for names like Adani and Macau gaming issuers, though trading volumes stayed light. Chinese property bonds showed some resilience, with survivors like Longfor and China Jinmao seeing some buying, while frontier markets like Mongolia and Pakistan held steady. We’re keeping an eye on upcoming deals—GOHL’s new perpetual issuance —which could test whether this cautious optimism has more legs.
Forex Market Updates
FX markets traded largely sideways on Tuesday before US President Trump's announcement of an indefinite extension to the Middle East ceasefire.
USD
The US Dollar edged higher against a basket of its major peers on Tuesday as markets awaited fresh US-Iran peace talks ahead of the expiration of the two-week long ceasefire, before US President Trump said after the NY close that the truce would be indefinitely extended, on Pakistan’s request, to allow the countries to continue negotiations. Trump said he would extend the ceasefire until Iran's "proposal is submitted, and discussions are concluded, one way or the other." Elsewhere, Kevin Warsh told lawmakers at his Senate confirmation hearing that the Fed’s conduct of monetary policy would remain “strictly independent” under his leadership, adding that he has made no promises to Trump about cutting interest rates. Analysts said that Warsh is likely to be confirmed, but the timing of any Senate approval remains unclear. On the data front, US retail sales increased more than expected in March as the Middle East conflict boosted gasoline.
Price action in the Dollar Index should remain below 99.70 in the near term, with the potential to dip to the previous low of 96.50 subject to positive developments towards ending hostilities in the Middle East.
JPY
The Japanese Yen posted small losses against the USD yesterday as markets continued to assess headlines around the US-Iran war with tentative optimism that peace talks aimed at re-opening the Strait of Hormuz would resume sooner rather than later. The Japanese currency has come under pressure since the start of the war partly due to Japan’s status as a net oil importer, and the BoJ yesterday said that the country needs to be vigilant against risks to its financial system stemming from the Middle East conflict, warning that prolonged tensions could keep energy costs elevated and increase corporate defaults. Separately, a Reuters report citing five sources familiar with the BoJ’s workings said that the central bank is likely to hold off on a rate hike next week, with policymakers leaning towards taking more time to gauge the fallout from the Iran War.
USDJPY is likely to remain well-supported above 157.60 for the time being.
GBP
The British Pound retreated modestly on Tuesday as data showed that UK employers were cautious in March after the start of the US-Iran war, with a measure of hiring falling during the month and the lowest number of job postings in almost five years. Analysts said that the figures pointed to a “shift in the mood” among employers, although growth in average weekly earnings still came in above market forecasts. The BoE has previously said that it believes the jobs market is softening but it is watching wage data carefully as it gauges inflation pressure in the British economy, which investors view as highly vulnerable to the spike in energy prices caused by the war in the Gulf. For his part, BoE Governor Bailey has said that the central bank should keep a clear eye on risks to growth and jobs as well as inflation when making its next decision on rates, with markets currently projecting around 35bps worth of tightening before the end of the year.
Sterling bulls could make headway towards technical resistance around 1.3650 should US-Iran talks progress positively.
XAU
Gold prices slipped by more than 2% yesterday in the face of a stronger USD and rising US yields as markets looked ahead to an extension of US-Iran talks. Comments by incoming Fed Chair Warsh in front of the US Senate also weighed on the precious metal, with Trump’s nominee for the position of next central bank chief saying that Trump never asked him to “commit to interest rate cuts” and that “monetary policy independence is essential”. Strong US retail sales figures, a gauge of US inflation, also cemented market projections that the Fed would keep benchmark interest rates on hold for a while, which should serve as a headwind against excessive bullion strength moving forward. Analysts said that, from a technical perspective, gold “remains range-bound with no clear breakout signal” for now.
Gold bulls could attempt to break above the $4,800 handle in the near term after the indefinite ceasefire extension.
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