European Stocks Surge, Oil Slump Boosts Market Sentiment
European stocks opened higher on Tuesday (March 10th) and closed the session with solid gains, as market participants monitored developments in the Middle East and responded to the decline in oil prices, which, while still high, had eased from their peak. The pan-European Stoxx 600 index closed up 1.8%, with most sectors trading in positive territory.
The Stoxx Europe Oil and Gas index was under pressure at the start of trading but rebounded and ended the session up around 0.3%. This gain helped the Stoxx 600 snap a three-day losing streak and helped the market begin to pare some of last week's sharp decline of nearly 6%, when global sentiment was shaken by the US-Iran war.
The sector that benefited most from the oil decline was airlines, as falling energy prices eased concerns about jet fuel costs. Shares of Lufthansa and Air France recovered from Monday's declines, rising 7.8% and 5.1%, respectively.
Global sentiment also improved, with Asia-Pacific markets and US stocks also strengthening. The S&P 500 was last up 0.35%, reflecting improved risk appetite after sharp pressure in previous sessions.
The market movement occurred as oil prices pared gains after US President Donald Trump told CBS News that the war was "very complete, more or less," but also signaled his readiness to act to keep the Strait of Hormuz open to oil flows. Trump said he was considering taking control of the strait and warned Iran would face greater repercussions if it tried to impede oil flow through the strategic waterway.
Source: Newsmaker.id
