The main European index (STOXX 600) on Monday rose by 0.67% and rose to a maximum of more than two months. The market is just a little bit away from a historical record, Reuters writes.
Shares of banks grew the strongest – the sector added almost 2%. Also sharply appreciated securities of airlines: Lufthansa rose by 3.7%, and Air France-KLM – at once by 7.5%.
The main reason is the fall in oil prices. Brent fell in price by almost 5% to $95 per barrel. Markets expect that the tension around the Strait of Hormuz (one of the most important oil supply routes in the world) may ease.
Investors were particularly encouraged by Trump’s statement that the conditions for unblocking the Strait of Hormuz are “generally agreed”. After that, the markets began to grow actively.
But experts urge not to jump to conclusions. Capital.com analyst Kyle Rodda noted that the U.S. and Iran still have serious disagreements, primarily over Tehran’s nuclear program and control over the Strait of Hormuz. According to him, it may not be a full-fledged peace agreement, but only a temporary compromise or a cease-fire.
It should be noted that trading in Europe is low activity: the US and UK stock exchanges are closed on Monday due to holidays.
