Stocks rise as optimism over Mideast war takes hold

Stock markets advance cautiously on expectations that a Mideast ceasefire will soon let oil and gas tankers resume transit through the Strait of Hormuz, easing inflation pressures that have upended economies worldwide.

Signs of fresh talks aimed at ending the war launched by the United States and Israel against Iran have pushed stock indexes to all-time highs, suggesting investors expect a quick economic rebound from the conflict.

European stocks ended largely just in the green, with London and Frankfurt adding a little shy of 0.5 percent on the day, while Paris slipped slightly.

Two hours into Wall Street trading, the Dow Jones is up just 0.1 percent at 48,499.95 points, with the broader-based S&P 500 adding 0.2 percent, though the tech-heavy Nasdaq is off 0.1 percent.

The Tokyo stock market earlier reached a record high, following all-time peaks for key US indexes on Wednesday as investors cheered healthy earnings for American blue chips despite surging oil prices and rising inflation overall.