European Stocks Rise, Optimism for US-Iran Deal Pressures Oil Prices
European stocks started the week with gains, supported by improving risk sentiment as optimism grew over a potential deal between the United States and Iran. The STOXX 50 Index rose 1.1% while the STOXX 600 gained 0.6% on Monday (May 25).
The main driver came from diplomatic developments seen as potentially de-escalating the conflict and reopening access to the Strait of Hormuz, a strategic shipping lane. President Donald Trump said negotiations with Iran were proceeding "orderly and constructively," although he added that he was in no rush to finalize a deal.
Indications from senior US officials also pointed to a closer agreement, with the narrative that Washington and Tehran were moving toward reopening the shipping route. The market response was seen in a sharp drop in oil prices, which typically provide support to equities through expectations of milder inflationary pressures and reduced risks of supply disruptions.
At the stock level, ASML Holding rose 1.2% amid the general market rally. Market participants' next focus will be on the continuation of official messages from the negotiation process and the extent to which the oil decline persists, given that changes in these two factors have the potential to be key determinants of the direction of risk sentiment in the coming sessions. (asd)
Source: Newsmaker.id
