European markets steady as US-Iran tensions persist, oil holds above $100

European equity markets traded in a calmer mood on Wednesday as investors digested ongoing US-Iran tensions without fresh escalation. The Stoxx 600 index edged higher, reflecting a tentative recovery from earlier risk-off moves. Oil prices held above $100 per barrel, with WTI crude down 0.4% to $101.75, as the market priced in a persistent geopolitical risk premium.

The US-Iran conflict remains unresolved, but the lack of new developments allowed traders to focus on other themes. The shift in attention towards President Trump's trip to China, where he arrived in Beijing and is set to meet President Xi Jinping over the next two days, introduces a potential source of headlines. For currency markets, the steady risk sentiment supported the euro and sterling against the dollar, while the yen remained under pressure from rate differentials. Traders can check NowPrice's fx page for real-time pricing on major pairs and commodities.

Looking ahead, the key event will be the Trump-Xi meeting, with any trade-related announcements likely to drive risk appetite. On the data front, US inflation figures due later this week could influence Federal Reserve rate expectations. Oil traders will watch for any supply disruptions from the Middle East, while equity markets may remain range-bound until clearer direction emerges from the geopolitical and trade fronts.