The bet of geopolitical de-escalation plays the market that yesterday closed with a slight rise of 0.22% in 2.289.44 units, near the high of the day but with lower transactions than in previous days at 287.5 million euros, 93% of which involved transactions in FTSE 25 shares. Banks continue to give the tone but [...]
European defence shares recorded a sharp drop of up to 7%, following statements by Kirillo Budanov, a senior adviser to Ukrainian President Volontimir Zelenski, that a peace agreement with Russia can be reached soon. Shares such as Rheinmetall, Hensoldt and Leonardo, which had been ejected 500% since February 2022, retreated significantly. Instead, construction companies and cement companies were strengthened over 5% due to expectations of post-war reconstruction. Analysts point out that the market questions whether governments will continue high defence spending, even though participants remain cautious about the outcome of the talks.
Wall Street scored an explosive rally after the US-Iran truce announcement. Dow Jones was launched 2.79% at 47,882,62 units, S&P 500 won 2.34% and Nasdaq was strengthened 2.76%. Trump told Truth Social that he agreed to suspend the bombings for two weeks, while Iran agreed to open the Strait of Hormuz. Oil prices collapsed over 16%, with energy shares retreating, while Nvidia, Amazon and Tesla made profits over 2–3%.
