As scholarships from Europe closed higher this Wednesday, 20th, given the relief in oil prices as a result of the partial opening of the Strait of Hormuz by Iran.
Despite the cooling in prices, the market continues to consider the possible consequences of the geopolitical imbroglio on European economies, as well as the interest rate trajectory of the region’s main central banks.
In London, the FTSE 100 closed up 0.99%, at 10,432.34 points. In Frankfurt, the DAX rose 1.36%, to 24,732.28 points. In Paris, the CAC 40 gained 1.7%, at 8,117.42 points.
In Milan, the FTSE MIB advanced 1.71%, to 49,181.66 points. In Madrid, the Ibex 35 rose 2.16%, to 18,051.70 points. In São Paulo, the PSI 20 increased by 0.96%, to 9,247.99 points. Quotes are preliminary.
It supported risk appetite in Europe earlier, and was also reinforced by reports that Pakistan intends to announce a final version of the text of the agreement between USA and Iran to end hostilities before face-to-face negotiations. Faced with geopolitical relief, the defense and aerospace sector advanced 3.3%.
The consequences of the war on the economy, on the other hand, remained in focus: leaders of the Bank of England (BoE, its acronym in English) defended caution before a possible interest increase given the environment of uncertainty and risks of high inflation.
In the eurozone, the leader of the European Central Bank (ECB) and President of the Central Bank of Belgium, Pierre Wunsch, said he sees “high chances” of a monetary tightening at the June meeting if the war continues. The comments came after conflicting data from and within the euro zone.
Furthermore, the French president’s nominee, Emmanuel Macron, to head the French BC, Emmanuel Moulin, had his candidacy approved by parliament.
Among other highlights, Dutch semiconductor giant ASML closed up 6.6%, while the technology sector gained 3.1%.
In the banking sector, Commerzbank advanced 3% and UniCredit rose 2.4%, after the CEO of the German bank asked shareholders to reject the acquisition proposal by the Italian institution.
