European stock exchanges rise, oil rally slows

The main European stock exchanges recorded an overall positive day, with broad-based gains of varying intensity. Investors’ focus remains on the conflict in the Middle East, particularly on oil, which, after the recent strong rally, is now showing signs of cooling.

Gains in Key European Indices

The French CAC 40 rose by 0.44%, while Italy’s FTSE MIB recorded a stronger increase of 0.75%. The UK’s FTSE 100 posted a more modest gain of 0.28%. In Germany, the DAX advanced by 0.76%, while Spain’s IBEX 35 delivered the best performance among major indexes with a +0.90% increase. The STOXX Europe 600, which reflects the overall European market, closed up 0.54%, confirming generally positive investor sentiment.

Oil Prices Cool

Oil remains in the spotlight for investors. Brent recorded a slight gain of 1.11% in today’s session, while WTI oil, despite a marginal increase of 0.06%, shows a clear slowdown in prices, standing at $96.20 per barrel.

Shift in U.S. Policy

The United States, led by Treasury Secretary Scott Bessent, is considering temporarily suspending sanctions on a large volume of Iranian oil currently stuck on tankers. The aim is to quickly increase global supply and ease oil prices, which have risen due to tensions in the Strait of Hormuz, in an effort to prevent market shocks. However, this is only a short-term measure and does not address the underlying geopolitical issues.

ECB and Fed Decisions

Finally, the European Central Bank confirmed yesterday that interest rates will remain unchanged at 2%. The U.S. Federal Reserve made the same decision, keeping rates between 3.5% and 3.75%.