European stock markets experienced significant gains on Wednesday as traders reacted positively to reports of an imminent war-ending agreement between the United States and Iran. According to U.S. news website Axios, the White House anticipates that Iran will respond within the next 48 hours regarding "several key issues," including a suspension of nuclear enrichment activities. It is reported that the two nations are close to releasing a one-page memorandum outlining a framework for a peace agreement. An Iranian Foreign Ministry spokesperson told CNBC that Tehran is "evaluating" a 14-point peace proposal put forward by the U.S. government. Driven by this news, the pan-European Stoxx 600 index surged by 2%. The UK's FTSE 100 index rose by 2.2%, while France's CAC 40 and Germany's DAX indices both increased by 2.3%. All major European exchanges and sectors recorded gains, except for the oil and gas sector. Following the announcement, the Euro strengthened against the U.S. Dollar, rising by 0.65%. Wednesday's breakthrough follows U.S. President Donald Trump's earlier announcement to suspend the "Freedom Plan"—a U.S. initiative aimed at "guiding" vessels through the Strait of Hormuz. In a post on the Truth Social platform, he attributed this move to "significant progress in negotiations with Iranian representatives towards a comprehensive, final agreement." On Tuesday, official media reported that Iranian Foreign Minister Abbas Araghchi met with Chinese Foreign Minister Wang Yi in Beijing. Advisors to Trump have reportedly urged China to pressure Iran into reopening the Strait of Hormuz—a critical channel for oil and gas transportation. Markets are poised for a rebound from Tuesday's volatility. Previously, a fragile ceasefire between the U.S. and Iran was on the verge of collapse after the UAE was attacked by Iranian drones and missiles, and the White House announced the sinking of an Iranian vessel in the Strait of Hormuz. Overnight, South Korea's Kospi index rose by 6.5%, breaking through the 7,000-point mark to reach a record high, with a year-to-date increase exceeding 70%. Index heavyweight Samsung Electronics saw its shares surge over 15%, achieving a market capitalization above $1 trillion and setting a new record. SK Hynix also rose over 10%, similarly reaching an all-time high. On Wednesday, Danish pharmaceutical company Novo Nordisk raised its full-year profit forecast. The drugmaker reported that sales of its blockbuster weight-loss drug exceeded expectations for the first three months of the year. The financial results included sales of Novo Nordisk's oral weight-loss drug Wegovy in the U.S., which reached 2.26 billion Danish kroner, significantly surpassing the Reuters-compiled analyst consensus estimate of 1.16 billion kroner. Despite being impacted by weak U.S. consumer confidence affecting performance, Danish jeweler Pandora reported first-quarter sales that exceeded analyst expectations, leading to a 9% jump in its share price. Pandora's profit margins have been pressured by import tariffs from the Trump administration and rising silver prices. The company announced on Wednesday that it would apply for tariff rebates under the U.S. International Emergency Economic Powers Act. Shares of Novo Nordisk opened 1.1% higher. In other market movements on Wednesday, European investors are set to focus on earnings reports from Next, Ørsted, and Flutter.
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