European stocks rebounded during this second session of the week, driven by hope 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.
In the United States, the main American indices are in the green: the Dow Jones gained 0.66% and the Nasdaq advanced by 1.39%, heading straight for a tenth consecutive session of gains, a streak unseen since 2021. Discussions between the United States and Iran could resume this week, reviving hope for a détente on the geopolitical front. In this context, oil prices fell below $100, with Brent losing 1.89% to $96.04 USD at the close of European markets.
According to the International Energy Agency (IEA), the war in the Middle East has caused “the most serious oil supply shock in history.” The agency also anticipates the strongest demand contraction since the Covid-19 pandemic in the second quarter of the year. The International Monetary Fund (IMF) in its latest forecasts does not rule out the risk of a global recession in the event of prolonged conflict but emphasizes that this scenario is not its central assumption at this stage.
“The fact that a ceasefire has been agreed reduces the likelihood of our most pessimistic scenario, without guaranteeing a quick return to normalcy in the Middle East and the Strait of Hormuz,” noted Invesco. Tuesday’s session was also marked by quarterly results. LVMH ended close to break-even (-0.06%) after briefly being the worst performer during the session, reporting quarterly sales below expectations.
The flagship index of the Paris stock exchange was lifted by Eurofins (+5.52%) following the announcement of a deal to sell its electrical and electronic testing business to UL Solutions for an enterprise value of 575 million euros. Publicis (+1.81%) had a strong session after releasing results largely in line with expectations.
In the foreign exchange market, the euro rose by 0.22% to 1.1793 USD.
