European stocks reached their highest point since March 2, driven by positive developments in U.S.-Iran peace talks and a subsequent drop in Eurozone bond yields. Major indices like the CAC 40 and DAX saw notable gains, mirroring a record high for Japan’s Nikkei 225.
President Trump’s optimistic statements on negotiations eased oil price concerns, while falling bond yields reflected reduced inflation expectations. Delivery Hero’s shares also jumped on news of a potential Uber bid.
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European stocks climbed to their highest levels since March 2 on Monday, buoyed by optimism surrounding ongoing U.S.-Iran negotiations and a subsequent drop in Eurozone bond yields. The pan-European Stoxx 600 index saw a significant rise of over 0.8% in early afternoon trading in London, reaching milestones not seen in over two months. Major European indices also performed strongly, with France's CAC 40 gaining 1.8% and Germany's DAX advancing 1.6%. Trading volumes were somewhat subdued due to a public holiday for the UK's FTSE 100.
This upward trend in European markets mirrored the performance in Asia, where Japan's Nikkei 225 index surged past the 65,000 mark for the first time. The Nikkei's record high was attributed to reports suggesting a potential reopening of the crucial Strait of Hormuz, which helped drive down oil prices and boost investor confidence.
President Donald Trump's positive remarks on his Truth Social platform regarding the U.S.-Iran talks further fueled market sentiment. He stated that negotiations were "proceeding in an orderly and constructive manner" and advised his representatives against rushing into a deal. Following these comments, oil prices experienced a decline of more than 5%, easing concerns for investors.
The positive developments in geopolitical tensions contributed to a drop in Eurozone bond yields. German 2-year Bund yields, particularly sensitive to interest rate expectations, fell over 9 basis points to 2.546%, marking their lowest point since May 8. This decline reflected easing inflation concerns and reduced expectations of immediate central bank rate hikes.
In corporate news, shares of Delivery Hero experienced a significant boost, rising over 10% on Monday. This surge followed a Financial Times report indicating that U.S. rival Uber had considered an improved bid for the German food delivery firm. Delivery Hero had previously confirmed receiving an offer from Uber valuing the company at over €10 billion. The company, however, stated it remains focused on its strategic review process.
