European Stocks Gain, Airlines Jump as Trump Announces Ceasefire
European stocks rallied, lifted by airline shares, as President Donald Trump pushed Israel and Iran to stick to a ceasefire agreement that would end 12 days of war in the Middle East.
The Stoxx Europe 600 Index gained 1.1% and Germany’s DAX rose 1.6% at the close in London. Energy stocks were the biggest laggards as oil prices extended Monday’s declines. The UBS basket of European airline stocks was up 6%, the most since April. EasyJet Plc rose 6.4%, TUI AG advanced 11% and British Airways owner IAG SA was 6.1% higher.
“Today, geopolitics is likely to continue dominating the markets,” said Mohit Kumar, chief European strategist at Jefferies. “Investors would be focused on whether the ceasefire will hold.”
The agreement has already been put to the test. Stocks held gains as Israel said it had destroyed a radar complex near Tehran after the truce came into effect. The strike was a response to three missiles from Iran, according to the office of Prime Minister Benjamin Netanyahu.
“The resilience of the market is just astonishing,” said Gilles Guibout, head of European equities at AXA IM.
Source : Bloomberg
