European stock markets rebounded during the second session of the week, buoyed by hopes of a resumption of negotiations between Washington and Tehran. The CAC 40 rose by 1.12% to 8,327 points, while the Euro Stoxx 50 gained 1.31% to 5,982 points.
Across the Atlantic, the main American indices are in the green: the Dow Jones is up 0.66% and the Nasdaq is advancing by 1.39%, heading towards a tenth consecutive session of growth, a streak unseen since 2021.
Discussions between the United States and Iran may resume as early as this week, reviving hope of a easing on the geopolitical front. In this context, oil prices are back below the $100 mark, with Brent falling by 1.89% to $96.04 at the close of the European markets.
According to the International Energy Agency (IEA), the war in the Middle East has caused “the most severe oil supply shock in history.” The Agency also anticipates the strongest demand contraction since the Covid-19 pandemic in the second quarter. “Oil demand is expected to decline by 80,000 barrels per day (b/d) this year, with the Iran war disrupting our global outlook,” it said in its March monthly report.
In its latest forecasts, the International Monetary Fund does not rule out the risk of a global recession in the event of a prolonged conflict, while emphasizing that this scenario does not currently represent its central assumption.
“The fact that a ceasefire has been reached reduces the likelihood of our most pessimistic scenario, without guaranteeing a quick return to normalcy in the Middle East and the Strait of Hormuz,” emphasizes Invesco.
Tuesday’s session was also marked by quarterly results. LVMH finished close to equilibrium (-0.06%) after briefly being the worst performer during the session, with the luxury giant reporting quarterly sales below expectations last night.
The flagship index of the Paris stock exchange was boosted by Eurofins (5.52%) after announcing an agreement to sell its electrical and electronic testing business to UL Solutions for an enterprise value of 575 million euros.
Meanwhile, Publicis (1.81%) had a solid session after releasing results generally in line with expectations.
In the foreign exchange market, the euro is up by 0.22% to 1.1793 USD.
