European Stocks Open Mixed After US-Iran Deal and Fed Signals
European stocks were mixed on Thursday (June 18th), as investors weighed the impact of the interim US-Iran deal and hawkish signals from the Federal Reserve. The STOXX 50 rose 0.3% to a new record of 6,330 points, while the STOXX 600 fell 0.2% to 638 points.
The US-Iran ceasefire agreement, which includes the reopening of the Strait of Hormuz, pushed oil prices to a three-month low. A decline in energy prices helped ease inflation concerns, particularly in the European region, which is sensitive to global energy costs.
However, market sentiment was tempered after the Fed kept interest rates unchanged but left open the possibility of a hike to curb inflation. Signals from Fed Chairman Kevin Warsh have made investors more selective, as higher US interest rates could impact global yields and stock valuations.
Market attention is also shifting to the Bank of England, which is expected to keep interest rates unchanged. Investors will be watching for any divergences among policymakers that could signal a more hawkish shift.
In individual stocks, BE Semi fell 0.4% despite raising its long-term revenue and margin targets. Volkswagen fell 0.5% amid reports of problems at its Osnabrück plant, while UniCredit rose 0.4% after approaching Delfin regarding a potential stake increase in Generali. Generali shares rose 2.6%. (asd)
Source: Newsmaker.id
