Global financial markets are finally rising on Wednesday, buoyed by Donald Trump’s comments suggesting an imminent end to the conflict with Iran, with military operations potentially wrapping up “in two to three weeks.”
These remarks of Trump, combined with apparently positive discussions with Iran, have radically shifted investor sentiment compared to the gloomy weeks of late.
In Europe, the reaction was immediate and massive : the pan-European STOXX 600 index surged by about +2.3% at the open, marking its strongest gain in nearly a year. In Paris, the CAC 40 followed suit with a surge of +2.4%, after being projected to rise by more than +2% even before the market opened. Germany was not to be outdone, with the DAX up nearly +2.7%, while London advanced by about +1.8%.
Transportation sectors lead the way
The anticipated easing of geopolitical tensions has particularly benefited sectors most sensitive to the economic cycle and energy prices. Airline stocks led the way, with Air France-KLM shares soaring nearly 10%, benefiting directly from falling oil prices and the prospect of a return to normal international traffic.
Across Europe, shares in airlines, hotels, and booking platforms rose by 4.3%.
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