European equity markets are set for a strong opening session, with FTSE 100 futures pointing to broad gains across the index.
The positive momentum follows a decisive shift in sentiment on Wall Street, where the Dow Jones Industrial Average closed at a fresh record high on Tuesday.
The broad-based rally marks a clear departure from the sustained selling pressure that has weighed on global markets in recent weeks.
The catalyst for the repricing appears to be fresh developments in US-Iran peace negotiations.
Investors are weighing the prospect of de-escalation in the Strait of Hormuz, a key chokepoint that has been a persistent source of volatility for energy and shipping stocks.
The improved diplomatic outlook has helped lift risk appetite, reversing the bearish trend that followed earlier escalations in rhetoric between Washington and Tehran.