Sanitation: Markets cling on as ceasefire is tested

Morning Bid Europe

A look at the day ahead in European and global markets

By Tom Westbrook, Senior Asia Markets Correspondent

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Oil ticked higher and European futures wobbled on Friday, while the U.S. and Iran exchanged fire in ‌the Middle East.

But with investors choosing to focus on hopes for a more lasting peace deal moves were modest and, in Asia, dominated by big weekly gains in AI stocks.

Today's Market News

British local vote, Gulf ceasefire in focus

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, May 7, 2026. REUTERS/staff

Traders were watching early results in Britain's local elections, which showed heavy losses for ⁠Keir Starmer's Labour Party though sterling stayed steady at $1.36 in Asia.

U.S. and Iranian forces clashed in the Gulf, and the UAE came under renewed attack. U.S. President Donald Trump later told reporters the ceasefire was still in effect and sought to play down the exchange, leaving oil at $101 a barrel.

Toyota (7203.T), opens new tab forecast a 20% decline in profit for the current financial year on Friday, as cost and supply ‌uncertainties ⁠stemming from the Iran war weigh on earnings, and its shares fell about 1.5%.

Graphics are produced by Reuters

Chuky week

Most markets in Asia logged small losses on Friday but were set for chunky weekly gains led by South Korea, where runaway rallies in ⁠chipmakers Samsung Electronics (005930.KS), opens new tab and SK Hynix (000660.KS), opens new tab had the KOSPI (.KS11), opens new tab on course for a 13% weekly rise, its best since 2008.

Key developments that could influence markets on Friday:

- U.S.-Iran negotiations
- German trade data
- U.S. non-farm payrolls

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