Volkswacht Bodensee - Stocks advance, oil falls as traders eye US-Iran ceasefire

Oil prices pulled back after the two sides traded fire as they vied for control of the Strait of Hormuz, a crucial export route.

Wall Street's main indices advanced as trading got underway in New York, with the Nasdaq setting a new all-time high as tech stocks rebounded.

"US equities continue to get a boost from the first quarter earnings season," said Trade Nation analyst David Morrison.

He noted the year-on-year earnings growth rate over 27 percent, which if it holds up would make it the strongest quarter since the post-Covid rebound.

In Europe, Paris rose 0.7 percent and Frankfurt advanced 1.4 percent in afternoon deals.

London's FTSE 100 index fell more than one percent as traders returned from the UK bank holiday.

The index was weighed by a sharp drop to the share price of banking giant HSBC, whose first-quarter earnings missed expectations as profits were hit by a surprise $400 million fraud-related charge and economic risks from the Middle East crisis.

Italian bank UniCredit jumped more than six percent in Milan after it reported a sharp rise in first-quarter net profit.

"First-quarter corporate earnings have largely been robust so far which has helped to sustain global equities despite the uncertain backdrop," said AJ Bell head of markets Dan Coatsworth.

"However, the longer the situation goes on without any sign of a lasting resolution, the harder it will be for investors to remain positive," he added.

- Oil price falls -

International oil benchmark Brent North Sea fell around 2.7 percent to about $111 per barrel after sharp gains the previous day.

Crude prices surged Monday after the US military said it hit six Iranian boats threatening commercial shipping and its forces repelled missile and drones.

The United Arab Emirates, meanwhile, said it was targeted by Iranian strikes, including one on its vital Fujairah energy hub.

"Global market sentiment has made a cautious start to the week, with renewed attacks in the Gulf casting doubt on the state of the four-week-old ceasefire," said Jim Reid, managing director at Deutsche Bank.

Fears that the ceasefire could fall apart weighed on Asian equities, with Hong Kong, Singapore, Mumbai, Bangkok, Manila and Wellington all down.

Sydney also retreated as the Australian central bank hiked interest rates for the third straight meeting, citing rising energy prices.

Tokyo and Shanghai were closed for holidays.

- Key figures at around 1330 GMT -

Brent North Sea Crude: DOWN 2.7 percent to $111.37 a barrel

West Texas Intermediate: DOWN 3.6 percent at $102.59 a barrel

New York - Dow: UP 0.5 percent at 49,186.55 points

New York - S&P 500: UP 0.6 percent 7,245.66

New York - Nasdaq Composite: UP 0.8 percent at 25,260.09

London - FTSE 100: DOWN 1.4 percent at 10,218.85

Paris - CAC 40: UP 0.7 percent at 8,034.40

Frankfurt - DAX: UP 1.4 percent at 24,325.06

Hong Kong - Hang Seng Index: DOWN 0.8 percent at 25,898.61 (close)

Tokyo - Nikkei 225: Closed for a holiday

Shanghai - Composite: Closed for a holiday

Dollar/yen: UP at 157.73 yen from 157.08 yen on Monday

Euro/dollar: UP at $1.1703 from $1.1701

Pound/dollar: UP at $1.3550 from $1.3538

Euro/pound: DOWN at 86.35 pence from 86.41 pence

F.Mueller--VB