European Stocks Rise 1%+ as De-escalation Hopes Lift Sentiment
European stocks rallied on Wednesday (March 25th), supported by improving risk sentiment following hopes that the conflict with Iran could ease. The STOXX 50 Index rose 1.5% and the STOXX 600 gained 1.2%, reflecting a broad recovery in risk appetite amid a rapidly shifting geopolitical narrative.
The main catalyst came from US President Donald Trump's statement that Washington was negotiating with Tehran and implying that Iran was willing to reach a peace deal, although Iranian authorities denied any direct talks. Trump also said he was backing away from recent threats to order attacks on Iran's energy infrastructure "because we're negotiating." The market responded with a drop in oil prices of around 6%, which helped ease concerns about energy inflation.
The gains in European stocks were widespread, with all sectors in the green. Industrials and technology sectors led the gains, in line with improving risk appetite as energy cost pressures eased and geopolitical volatility eased somewhat, although uncertainty remained high due to the lack of alignment between the two sides.
Source: Newsmaker.id
