European stock markets rebounded during this second session of the week, driven by hopes of a resumption of negotiations between Washington and Tehran. The CAC 40 rose by 1.12% to 8,327 points, while the Euro Stoxx 50 gained 1.31% to 5,982 points.
In the United States, the main American indices are in the green: the Dow Jones is up by 0.66% and the Nasdaq is advancing by 1.39%, heading straight towards a tenth consecutive session of increases, a series unseen since 2021.
Discussions between the United States and Iran could resume as early as this week, reviving hopes of a de-escalation on the geopolitical front. In this context, oil prices have dropped below $100, with Brent falling by 1.89% to $96.04 at the close of European markets.
According to the International Energy Agency (IEA), the war in the Middle East has caused “the most severe oil supply shock in history.” The Agency also anticipates the strongest demand contraction since the Covid-19 pandemic in the second quarter, stating that “oil demand is expected to decrease by 80,000 barrels per day (b/d) this year, with the war in Iran disrupting our global outlook,” as specified in its March monthly report.
In its latest forecasts, the International Monetary Fund does not rule out the risk of a global recession in the event of a prolonged conflict, but it emphasizes that this scenario is not currently its central assumption.
“The fact that a ceasefire has been reached reduces the probability of our most pessimistic scenario, without, however, guaranteeing a swift return to normal in the Middle East and the Strait of Hormuz,” notes Invesco.
Tuesday’s session was also influenced by quarterly results.
LVMH ended near breakeven (-0.06%) after briefly being the worst performer during the session, as the luxury giant reported quarterly sales below expectations yesterday.
The flagship index of the Paris stock exchange was boosted by Eurofins (5.52%) following the announcement of a deal to sell its electrical and electronic testing business to UL Solutions for an enterprise value of 575 million euros.
Meanwhile, Publicis (1.81%) had a strong session after releasing results that were generally in line with expectations.
On the currency market, the euro gained 0.22% to 1.1793 USD.
