European shares are strengthening, with their main index showing growth of more than 1% in the morning. Shares in Germany are performing particularly well. The market is being helped in particular by optimism following the announcement of a ceasefire in the conflict between Iran and Israel. Shares on the Tel Aviv Stock Exchange and the Israeli shekel are also continuing to strengthen.
Ceasefire
The pan-European STOXX Europe 600 index was up 1.3 percent at 541.80 points at around 10:00 a.m. CEST. At the same time, the main index of the Frankfurt Stock Exchange, the DAX, was up 1.8 percent at 23,678 points.
Israeli Prime Minister Benjamin Netanyahu confirmed today that Israel has agreed to US President Donald Trump’s proposal for a ceasefire with Iran. The White House chief announced on Monday evening that Iran and Israel had agreed to a ceasefire. A few hours later, he said the ceasefire was already in effect and called on both countries to abide by the agreement.
Israeli stocks also posted gains for the sixth day in the last seven trading sessions. The Tel Aviv Stock Exchange’s TA-125 index was up 1.5 percent to 2,924 points around 10:00 a.m. CEST. The Israeli shekel rose to its highest level against the dollar in more than two years. Israeli stocks and currency are buoyed by optimism that Israel has removed the threat of Iran developing nuclear weapons in the foreseeable future, Reuters reported.
Supply shortages
Oil prices fell to two-week lows in response, as concerns about supply shortages eased. This weakened the shares of oil producers. Renewed risk appetite then pushed the price of gold to its lowest level in nearly two weeks and weakened the dollar. In previous days, the dollar had been helped by investors turning to it in times of geopolitical uncertainty.
The announcement of the ceasefire has already boosted Asian stock markets, and US stock futures indicate that US stock exchanges will also open higher this afternoon. Trading there begins at 9:30 a.m. Eastern Time (3:30 p.m. CET).
Source: ČTK
