European stock markets rebounded during the second session of the week, driven 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 by 0.66% and the Nasdaq is advancing by 1.39%, heading straight for a tenth consecutive session of growth, a series unprecedented since 2021. Discussions between the United States and Iran could resume as early as this week, revitalizing hopes for a geopolitical détente. In this context, oil prices fall below the $100 mark, with Brent closing the European markets at 1.89% to $96.04.
According to the International Energy Agency (IEA), the Middle East war 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. 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 is not currently its central assumption.
“The fact that a ceasefire has been reached reduces the probability of our most pessimistic scenario, without guaranteeing a quick return to normalcy in the Middle East and in the Strait of Hormuz,” says Invesco. Tuesday’s session was also marked by quarterly results.
LVMH finished close to balance (-0.06%) after briefly holding the position of worst performer during the session, with the luxury giant reporting quarterly sales below expectations. The flagship index of the Paris Stock Exchange was lifted 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.
On the other hand, Publicis (+1.81%) had a strong session after releasing results generally in line with expectations. In the currency market, the euro is up by 0.22% to 1.1793 USD.
