FINWIRES · TerminalLIVE
FINWIRES

Sinking Oil Prices, Rising Peace Hopes Lift European Bourses Midday

By

European bourses tracked solidly higher midday Friday as traders digested media reports of a possible peace deal between Washington and Tehran, and weighed sinking oil prices.

Bank, property and tech stocks led gains on continental trading floors, while oil shares lagged.

Front-month North Sea Brent crude-oil futures traded on the cusp of $87 a barrel midday, after cresting near $94 a barrel on Thursday.

Investors also eyed Wall Street futures flashing green, and solidly higher closes overnight on Asian exchanges.

In other news, Elon Musk's SpaceX is slated to start trading on the Nasdaq in New York at the opening bell, with IPO shares priced at $135 each. The offering, the largest IPO in history, plans to raise $75 billion, resulting in a $1.77 trillion market cap for the enterprise, which operates spacecraft and the Starlink satellite system.

The pan-continental Stoxx Europe 600 Index was up 1.6% mid-session.

The Stoxx Europe 600 Technology Index was up 1.4%, and the Stoxx 600 Banks Index gained 3.9%.

The Stoxx Europe 600 Oil and Gas Index eased 2.6%, while the Stoxx 600 Europe Food and Beverage Index inclined 0.8%.

The REITE, a European REIT index, rose 1.9%.

On the national market indexes, Germany's DAX was up 1.7%, and the FTSE 100 in London gained 1.3%. The CAC 40 in Paris was up 1.9%, and Spain's IBEX 35 lifted 2.3%.

Yields on benchmark 10-year German bonds were lower, near 2.99%.

The Euro Stoxx 50 volatility index was down 9.9% at 19.13, indicating below-average volatility for European stock markets in the next 30 days, a positive signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

Related Articles

International

RBA Expected to Keep Cash Rate Unchanged at June Meeting, Westpac Says

Westpac affirmed its existing expectation that the Reserve Bank of Australia's (RBA) monetary policy board will keep the cash rate unchanged at its June meeting, according to a Friday report.The preceding three rate hikes have given the central bank space to assess the trends of consumers and housing markets versus high inflation pressures as well as a boom in data centers and related investment.A lower peak for oil and, thus, petrol and diesel prices lowers the peak for headline inflation to 4.7% from 5%, the bank said, noting that this slightly lower track for underlying inflation is still higher than the RBA's own forecasts. Headline inflation is expected to reach 4.4% on an annual basis in the second quarter.Meanwhile, trimmed mean inflation was revised marginally lower across the second, third, and fourth quarters, lowering the peak in the year-ended rate to 3.8% from 4%. It is expected to return to the RBA's target band by the end of 2027 at 3% and ease to 2.4% by the end of 2028. It continues to see significant pass-through from higher fuel costs into some other prices.The bank continues to assume shipping from the reopening of the Strait of Hormuz and Gulf oil supply normalization will rise to around 10% of normal levels by end-June, with full normalization not occurring until mid-2027.

$^AXJO
International

World Bank Trims 2026 Growth Forecast for China to 4.2%

The World Bank trimmed its 2026 forecast for China to 4.2% on lower domestic demand and consumer confidence, according to a report released Thursday.The reading in June is 0.2 percentage points lower than the 4.4% growth forecast in January.The multilateral lender also attributed the downward forecast to continued property sector adjustment and a decline in the labor force.

$^SSEC$^SZSE
International

World Bank Raises India's 2026 GDP Growth Forecast to 6.6%

The World Bank raised its economic growth forecast for India, citing resilient domestic demand, strong rural consumption and a recovery in urban demand that helped sustain economic activity early this year despite heightened geopolitical uncertainty.In its latest Global Economic Prospects report released Thursday, the international organization said it expects India's gross domestic product to expand 6.6% in 2026, slightly higher than its 6.5% forecast in January.The latest outlook nevertheless marks a slowdown from the 7.7% GDP growth recorded in 2025, reflecting softer private demand growth amid elevated energy prices and higher input costs.GDP growth is projected to accelerate to 7.2% in 2027 before easing to 7.0% in 2028, supported by strengthening domestic demand and a pickup in exports.

$^BSE$^NSEI