European shares advance on Israel-Iran ceasefire
European stocks soared on Tuesday, buoyed by a fragile ceasefire between Israel and Iran, while a slump in oil prices dragged energy stocks lower.
The pan-European Stoxx 600 index rose 1.1 per cent, hitting a one-week high during the session and notching its biggest single-day jump in over a month.
While most sectors basked in the rally, energy stocks lagged as oil prices tumbled 5 per cent. The sharp drop came after Iran's token response signalled no imminent threat to the critical Strait of Hormuz shipping route.
DUBLIN
The Iseq All-Share index jumped 1.9 per cent to 11,293.89, with Ryanair standing out as a strong feature – jumping 5.2 per cent to €24.10 – on news of the de-escalation of conflict in the Middle East.
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Banking stocks were also among the main advancers as sector followers' fears about the global economy eased. AIB nudged 1.3 per cent higher to €6.73, while Bank of Ireland gained 1.5 per cent to €11.62.
Housebuilders were also in demand, with Cairn Homes gaining 1.9 per cent to €2.17 and Glenveagh Properties rising 0.9 per cent to €1.76.
LONDON
The FTSE 100 index closed little changed, however.
Gold miner Endeavour Mining declined 5.8 per cent while peer Fresnillo fell 2.5 per cent.
In contrast, airlines EasyJet and British Airways owner IAG both climbed 6.4 per cent on hopes for lower fuel costs and reduced travel disruption.
Bunzl gave back strong early gains, closing up 0.2 per cent, after backing full-year guidance.
The London-based distribution and outsourcing company said revenue is expected to be 4 per cent higher in the six months to June 30 than the previous year, at constant exchange rates, and up to 1 per cent higher at actual exchange rates.
Cruise operator Carnival jumped 11 per cent as it reported its highest-ever second quarter operating results, and said it expects to continue to take its results higher over time.
Travel company On The Beach advanced 5.9 per cent as RBC Capital Markets started coverage with the equivalent of a buy rating.
EUROPE
Airlines and travel stocks soared, with the sector vaulting 4.3 per cent – its biggest daily rise in more than 18 months – as hopes rose that the ceasefire would stick.
The optimism followed US president Donald Trump's late-Monday announcement that Israel and Iran had agreed to halt hostilities, a deal he confirmed was 'in effect', pressing both sides to honour the truce.
Germany's DAX surged 1.6 per cent, riding a dual wave of ceasefire relief and fresh economic stimulus after lawmakers approved record-setting investment plans for 2025 and 2026 to jump-start growth in Europe's economic powerhouse.
Alstom gained 7.7 per cent after the French train maker signed a €1.7 billion contract to supply 96 additional new-generation trains for a line in France.
NEW YORK
US stock indexes were ahead as investor fears of a broader conflict in the oil-rich Middle East eased.
Financial and technology stocks led the rally among S&P 500 subsectors, while energy stocks declined the most, tracking a drop in crude prices.
Defence stocks Lockheed Martin and RTX Corp also fell.
Investors also assessed Federal Reserve chair Jerome Powell's comments on monetary policy, where he reiterated the central bank's wait-and-watch approach to interest rates as tariff-driven price pressures become evident.
Market participants are pricing in at least two 0.25 of a percentage point rate reductions before year-end, with the first cut seen in September.
Several central bank officials, including Fed Board Governor Michael Barr and Fed
Among megacap stocks, Tesla shares lost ground.
Shares of crypto companies rose after bitcoin hit a one-week high. Coinbase Global and Strategy advanced.
Package delivery firm FedEx edged higher ahead of its quarterly results due after the closing bell.
Additional reporting, Reuters
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