European Stocks Recover from Selloff, Iran Headlines Shake Markets
European stocks reversed a sharp decline and closed higher on Monday (March 23rd) in one of their biggest intraday moves in years, after US President Donald Trump said he was delaying an attack on Iran's energy infrastructure following what he called "very good" talks with Tehran. The Stoxx Europe 600 ended up 0.6%, although it gave up some of its gains from the session high.
However, the de-escalation narrative was quickly disputed. Iran's semi-official Fars news agency stated there had been no direct or indirect contact with Trump and attributed the delay to Iranian threats. This kept markets sensitive to headlines, with investors awaiting clarity on the duration and escalation of the conflict.
The biggest rebounds were seen in airlines, luxury goods, banking, and semiconductors after Trump's comments eased some risk premiums. Conversely, energy stocks were pressured as oil prices fell sharply, with Brent falling around 10%.
Earlier, regional stocks plunged as much as 2.5% after Iran launched a new attack in the Persian Gulf hours before Trump's deadline to reopen the Strait of Hormuz. The intraday low-to-high movement of around 4.5% was said to be the largest since 2020, confirming that the market continues to move quickly following geopolitical developments.
Source: Newsmaker.id
