You can see the indecision on the DAX chart shown here but the overall mood was good. The bulk of the move came on Monday as the US and Iran reached a peace deal. That’s driven the price of oil lower and removed a material risk to the eurozone economy.
It’s concerning there was no follow through but the market has had plenty to digest this week with the new Fed chairman and the fighting in Lebanon threatening to derail peace. If we can get a lasting ceasefire, European stock markets could get a stronger bid. If you remember back to the start of the year, Europe was briefly the flavor of the moment.
Closing changes on the day:
- DAX flat
- STOXX 600 -0.2%
- UK FTSE 100 -0.4%
- CAC 40 -0.5%
- Spain IBEX -0.3%
On the week:
- DAX +1.6%
- CAD +1.0%
- FTSE 100 +0.5%
- STOXX 600 +0.45%
- SPAIN IBEX +3.2%
- Italy MIB +3.2%
Year-to-date, European stocks are up modestly.
