The world’s main financial markets are on the rebound this Wednesday, as the truce between Israel and Iran appears to be holding, despite its fragility. This easing of tensions in the Middle East has rekindled investors’ appetite for risky assets, driving up equity markets in Asia and Europe, pushing down the US dollar, and bringing about a slight recovery in oil prices after their recent plunge.
The truce between Iran and Israel, urgently negotiated by the United States after twelve days of cross-strikes, notably on Iranian nuclear facilities, averted a major regional escalation. Although Israel has stated that it reserves the right to respond to any new provocation, signals of appeasement, such as the gradual lifting of civil restrictions on both sides, were enough to reassure the markets at midday.
In Asia, Japan’s Nikkei ended up 0.3%, Australia’s ASX 200 index gained 0.1%, while Taiwan’s market jumped 0.9%. Chinese stock markets also reacted positively : the CSI 300 gained 0.5% and Hong Kong’s Hang Seng 0.8%. The trend continued in Europe, where the STOXX 600 advanced by 0.2%, driven in particular by automotive (+1.2%) and defense (+0.9%) stocks. The CAC 40 gained 0.36%.
Dollar on the retreat, bond yields at record lows
On the foreign exchange market, the US dollar continued its decline, falling to its lowest level against the euro since October 2021. The euro settled at $1.1612, close to an overnight high of $1.1641. The dollar index remains stable around 97.977, but the momentum is clearly bearish, fueled by the easing of geopolitical tensions and the prospect of monetary easing.
To continue reading this article, subscribe or log in to your account
Discover our plans
- Every day, keep up to date with the latest business news from the world of luxury.
- Receive the essential luxury business news by email every week
- Access all our events
- The Luxury Journals and Luxus Magazine in print and digital versions
Subscribe for 1€
Become an active member of the community of luxury leaders.
Read also > [STOCK MARKET UPDATE] Financial markets feverish in the face of geopolitical tensions and Fed expectations
Featured photo : © Getty Images
