PARIS, France: European stocks rose sharply on Wednesday thanks to sustained buying right through the day’s session as US-Iran ceasefire deal lifted sentiment.
A sharp drop in oil prices and lower bond yields contributed as well to the bullish mood in the markets, reported dpa-AFX.
The pan-European Stoxx 600 climbed 3.88 per cent. The UK’s FTSE 100 gained 2.51 per cent, Germany’s DAX jumped 5.06 per cent, and France’s CAC 40 moved up 4.49 per cent. Switzerland’s SMI settled with a gain of 2.53 per cent.
Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Greece, Iceland, Ireland, Netherlands, Poland, Spain, Sweden and Türkiye closed sharply higher.
Portugal ended moderately higher, while Norway and Russia closed weak.
United States (US) President, Donald Trump, said the breakthrough ceasefire deal is a major victory for international diplomacy, as Iran has signaled a readiness for lasting stability after a volatile and prolonged standoff.
In a post on Truth Social, Trump wrote, “A big day for World Peace! Iran wants it to happen, they’ve had enough! Likewise, so has everyone else!”
The ceasefire deal has opened the way to getting shipping on the move in the Strait of Hormuz, but both Iran and Oman can levy transit fees on ships traversing the waterway.
The deal calls for Israel and Hezbollah to halt fighting in Lebanon.
Trump said he was holding off on his threatened attacks on Iranian bridges and power plants, adding a 10-point proposal received from Iran is a workable basis on which to negotiate.
Iran’s Supreme National Security Council said negotiations with US representatives will begin in Islamabad on Friday and could last up to 15 days.
In the UK market, miners, banks and airliners posted handsome gains. Stocks from healthcare, retail, realty and industrial sectors too moved up sharply.
In economic news, Germany’s construction Purchasing Managers’ Index rose to 48.0 in March from 43.7 in February, data from S&P Global showed.
Data from Destatis showed Germany’s factory orders grew 0.9 per cent on a monthly basis in February, in contrast to the 11.1 per cent decline in January. Orders were forecast to expand 3 per cent.
Data from S&P Global showed the HCOB Construction PMI in France fell further to 38.4 in March from 43.9 in February, pointing to the steepest contraction in the construction sector in 18 months.
France’s trade deficit widened significantly to €5.8 billion (RM29.6 billion) in February 2026, as exports fell by 0.9 per cent month-on-month to €51.0 billion (RM260.1 billion), while imports jumped 5 per cent.
Data released by Eurostat said producer prices in the Euro Area decreased 0.7 per cent from January, slightly more than the 0.6 per cent fall expected by economists.
Prices had increased 0.8 per cent in January. On a yearly basis, producer prices posted a fall of 3 per cent, in line with expectations, following a 2 per cent decrease in January.
Eurozone retail sales declined in February due to a fall in food turnover, data from Eurostat showed. Retail sales dropped 0.2 per cent on a monthly basis in February, in line with expectations, after remaining flat in January.
Year-on-year, retail sales growth slowed to 1.7 per cent in February from 2.1 per cent in the prior month.
Retail sales in the EU27 also decreased 0.3 per cent in February but increased 1.7 per cent from the same period last year.
The UK construction sector continued to shrink in March as new orders declined the most in four months, survey results from S&P Global showed Wednesday. The construction Purchasing Managers’ Index declined to 45.6 in March from 44.5 in February.
UK house prices decreased 0.5 per cent on a monthly basis in March, reversing February’s 0.3 per cent increase as the Iran conflict pushed up inflation expectations and dampened hopes of interest rate reductions, data from the mortgage lender Halifax showed.
On a yearly basis, house price growth eased to 0.8 per cent in March from 1.2 per cent in February. – BERNAMA-dpa-AFX
