European stock markets experienced a notable rise on Wednesday as investors carefully assessed a mixture of company earnings results and important economic data. The uptick in stock values was accompanied by a slight increase in oil prices, driven in part by recent talks between the US and Iran. Investors are particularly looking forward to the minutes from the last Federal Reserve meeting as these may provide insights into the future of US borrowing costs, which could influence market trends moving forward.

In Asian markets, Tokyo's stock market reflected a similar positive trajectory, closing up by one percent following an announcement regarding the first phase of investments from Japan connected to a substantial $550 billion trade deal with US President Donald Trump. This commitment includes $36 billion earmarked for three infrastructure projects in Japan, which is under increasing pressure to uphold the promises made in 2025 to secure reduced trade tariffs from the US. This development highlights the continuing economic interplay between Japan and the US, particularly regarding trade and investment strategies.

Meanwhile, a significant portion of Asia's trading activity was curtailed due to the Lunar New Year holiday, which resulted in stock markets in Hong Kong, Shanghai, Seoul, and Taipei being closed. In Europe, London's FTSE 100 led the gains following economic reports indicating a decline in UK inflation during January, suggesting that the Bank of England may be poised to reduce its benchmark interest rate in the upcoming month—a move that could further influence economic stability and currency strength, particularly weighing on the pound. Overall, these developments underline a dynamic and interconnected global economic landscape, emphasizing the importance of international relations and domestic economic policies for market performance.