CNBC Daily Open: Markets rally on hopes of Iran-U.S. Strait of Hormuz deal

Hello, this is Justina Lee writing to you from Singapore, filling in for Leonie.

Optimism that Washington and Tehran could reach a deal to open the critical Strait of Hormuz has sent markets cheering, after U.S. Treasury Secretary Scott Bessent told CNBC that a deal to open the waterway could be reached by Wednesday.

In Asia, tech stocks rallied following Wall Street's record-setting session. General Motors and China's SAIC Motor extended their joint venture by 20 years, while India's retail inflation rose to an 18-month high in June.

Meanwhile in Europe, attention turned to Novo Nordisk after the weight loss drug maker's raised guidance failed to impress investors.

Traders are keeping a close watch on developments surrounding the Strait of Hormuz, after U.S. Treasury Secretary Scott Bessent told CNBC that Iran and the U.S. could reach a deal to open the Strait of Hormuz by Wednesday.

When asked whether Iran would be allowed to charge a toll, Bessent said: "It would be freedom of movement."

"The southern route through the waterway remains free and open for all commercial vessels seeking to transit the international waterway," the U.S. Central Command said in a post on X. About 20% of the world's oil flowed through the Strait before the war.

That said, tensions between Iran and the U.S. continue to linger. Iran has reportedly claimed that President Donald Trump could "ignite the spark" of World War 3 after Washington cautioned Tehran that it was its "last chance" to make a deal.

In Asia, tech stocks rallied on Wednesday, tracking Wall Street's record-setting session that was fueled by optimism surrounding artificial intelligence and growth stocks. That optimism in the region's tech stocks also spilled over to the automotive sector.

General Motors and China's SAIC Motor said they have extended their joint venture by 20 years, to 2047, following the initial deal that was established in 1997 for 30 years. The deal will focus on domestic sales of Buick and Cadillac models in China in addition to exporting products built in China for non-U.S. markets, according to GM.

Meanwhile, India's retail inflation rose to an 18-month high in June, crossing the central bank's 4% medium-term target for the first time in more than a year.

—Justina Lee

Novo Nordisk’s raised forecast fails to change the debate over its obesity business

Novo Nordisk's quarterly beat and guidance increase did little to resolve Wall Street's biggest concern: whether the Ozempic maker has a convincing path back to sustainable growth as competition from Eli Lilly intensifies.

Analysts said the better-than-expected quarter benefited from rebate adjustments and other temporary factors, obesity drug sales were broadly in line with expectations, and oral Wegovy slightly missed forecasts. 

At the same time, Novo reported another mixed clinical result for next-generation weight-loss drug CagriSema, reinforcing investor questions about the company's longer-term pipeline.

— Elsa Ohlen