STOXX Gains Slightly on Hopes of a US-Iran Deal
European stocks closed slightly higher on Friday (May 29), with the STOXX 50 rising 0.4% and the STOXX 600 adding 0.3% as risk sentiment improved. Optimism emerged after reports suggested the US and Iran were moving closer to an agreement, despite the recent series of attacks and retaliatory strikes.
Several reports suggested the agreement could potentially extend the ceasefire for 60 days and set a framework for negotiations on the future of Iran's nuclear program. This development helped lower the geopolitical uncertainty premium and boosted appetite for riskier assets, as reflected by the majority of sectors trading in the green.
On the macro front, preliminary data showed that French harmonized inflation rose less than expected to 2.8%, while Spain's inflation matched expectations at 3.6%. However, both remained well above the European Central Bank's (ECB) 2% target, keeping market attention on the prospect of a longer-term tightening period or more cautious interest rate cuts.
On a weekly basis, the STOXX 50 recorded a 0.6% increase, while the STOXX 600 remained flat. Going forward, market participants will monitor the consistency of US-Iran geopolitical signals, the release of further inflation in the eurozone, and the ECB's communication regarding the balance between inflation risks and support for growth. (asd)
Source: Newsmaker.id
