Euro Area Stocks Surge as Brent Falls Below $87 on Trump-Iran Peace Deal
Updated
Updated · CaixaBank Research · Jun 15
Euro Area Stocks Surge as Brent Falls Below $87 on Trump-Iran Peace Deal
3 articles · Updated · CaixaBank Research · Jun 15
Summary
$87 Brent crude and euro-area equities moved sharply after a weekend Trump-Iran peace deal set up a Friday signing and the reopening of the Strait of Hormuz.
Spanish stocks led the rally, euro-area government bond yields fell and peripheral spreads narrowed as investors priced in lower geopolitical risk and easier energy supply.
TTF natural gas settled below €47/MWh, while market-implied volatility dropped and U.S. stock indexes stayed broadly stable.
U.S. Treasury yields edged up ahead of this week's Fed meeting, which is expected to leave rates unchanged, with the Bank of England and Bank of Japan also due to meet.