European equities recorded their largest weekly advance in more than a month, as optimism over a potential lasting resolution to the Iran conflict boosted investor sentiment.
The Stoxx Europe 600 index closed 0.7% higher, bringing its weekly gain to 3%. Reports indicated that a mediator favored by both Washington and Tehran, a Pakistani military official, is en route to Iran.
The European benchmark index has now recovered to levels near its late-February record highs, which preceded the onset of U.S. and Israeli strikes against Iran. Trading volume was 15% below the 30-day average ahead of the long weekend holidays in the UK and the US.
European markets posted gains every day this week, with investors setting aside concerns over a regional economic slowdown and persistent inflation. Concurrently, technology stocks in Asia and the US saw significant rallies as investors shifted focus towards companies involved in artificial intelligence infrastructure.
"Record highs are clearly within sight again," said Vincent Juvyns, Chief Investment Strategist at ING in Brussels. "Europe has been the primary economic casualty of this war, so a de-escalation in the Middle East would position Europe as a major beneficiary of a relief rally."
Comments