European Stocks Rise After Trump Holds Off Attack on Iran
European stock markets rallied on Friday (June 12th), with the Stoxx 50 and Stoxx 600 indices both rising more than 1%. This increase was driven by easing oil price pressure after US President Donald Trump halted plans for further attacks on Iran.
The travel, construction, and automotive sectors were the main drivers of market gains. The decline in oil prices provided positive sentiment for sectors sensitive to energy costs. Meanwhile, energy stocks lagged slightly as the weakening oil price actually weighed on the sector's earnings prospects.
Several major European stocks also rose. ASML Holding rose 0.8%, LVMH surged 3.3%, and Siemens gained more than 2%. Market sentiment was also helped by Trump's statement that a peace deal with Iran could be reached this weekend, including the reopening of the Strait of Hormuz and Iran's commitment not to develop nuclear weapons.
Economically, the market also eyed UK data showing the economy contracted 0.1% in April after two months of growth. On the other hand, the European Central Bank raised interest rates for the first time in nearly three years and signaled that tight monetary policy could remain in place until 2027. This situation has made investors remain cautious even though European stock market sentiment is improving. (asd)
Source: Newsmaker.id
