European Markets Close On Upbeat Note As U.S.-Iran Ceasefire Deal Lifts Sentiment

(RTTNews) - European stocks rose sharply on Wednesday thanks to sustained buying right through the day's session as U.S.-Iran ceasefire deal lifted sentiment. A sharp drop in oil prices and lower bond yields contributed as well to the bullish mood in the markets.

The pan European Stoxx 600 climbed 3.88%. The UK's FTSE 100 gained 2.51%, Germany's DAX jumped 5.06% and France's CAC 40 moved up 4.49%. Switzerland's SMI settled with a gain of 2.53%.

Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Greece, Iceland, Ireland, Netherlands, Poland, Spain, Sweden and Türkiye closed sharply higher.

Portugal ended moderately higher, while Norway and Russia closed weak.

U.S. President Donald Trump said the breakthrough ceasefire deal is a major victory for international diplomacy, as Iran has signaled a readiness for lasting stability after a volatile and prolonged standoff.

In a post on Truth Social, Trump wrote, "A big day for World Peace! Iran wants it to happen, they've had enough! Likewise, so has everyone else!"

The ceasefire deal has opened the way to getting shipping on the move in the Strait of Hormuz, but both Iran and Oman can levy transit fees on ships traversing the waterway.

The deal calls for Israel and Hezbollah to halt fighting in Lebanon. Trump said he was holding off on his threatened attacks on Iranian bridges and power plants, adding a 10-point proposal received from Iran is a workable basis on which to negotiate.

Iran's Supreme National Security Council said negotiations with U.S. representatives will begin in Islamabad on Friday and could last up to 15 days.

In the UK market, miners, banks and airliners posted handsome gains. Stocks from healthcare, retail, realty and industrial sectors too moved up sharply.

Rolls-Royce Holdings soared nearly 12%. Lion Finance, Antofagasta and Standard Chartered climbed 9.6%-10%. Persimmon, Spirax Group, IAG, Melrose Industries, Weir Group, Fresnillo, Barclays, Airtel Africa, Intercontinental Hotels Group, IMI, Natwest Group, Kingfisher, Lloyds Banking Group, Halma and Berkeley Group Holdings surged 6.5%-9%.

Energy stocks BP and Shell shed 5.82% and 2.4%, respectively, as Brent crude futures tanked nearly 16%.

In the German market, Siemens Energy, Infineon, Siemens, Commerzbank and Heidelberg Materials climbed 9%-12%.

Deutsche Bank, Daimler Truck Holding, Continental, Zalando, MTU Aero Engines, Vonovia, Deutsche Post, Siemens Healthineers, BMW, Adidas, Merck, Mercedes-Benz, Henkel, Porsche Automobil Holding, Qiagen and Beiersdorf gained 3.3%-7.3%.

In the French market, ArcelorMittal zoomed nearly 13%. Safran surged almost 11%. Schneider Electric, Societe Generale, Legrand, Accor, Airbus, Kering, Saint-Gobain, BNP Paribas and Hermes International moved up 7%-10%.

Renault, LVMH, Stellantis, STMicroelectronics, EssilorLuxottica, Credit Agricole, Unibail Rodamco, L'Oreal, Michelin, Vinci, Veolia Environment, Bureau Veritas and Pernod Ricard were among the several other impressive gainers.

TotalEnergies ended more than 3% down, weighed down by weak oil prices.

In economic news, Germany's construction Purchasing Managers' Index rose to 48.0 in March from 43.7 in February, data from S&P Global showed.

Data from Destatis showed Germany's factory orders grew 0.9% on a monthly basis in February, in contrast to the 11.1% decline in January. Orders were forecast to expand 3%.

Data from S&P Global showed the HCOB Construction PMI in France fell further to 38.4 in March from 43.9 in February, pointing to the steepest contraction in the construction sector in 18 months.

France's trade deficit widened significantly to €5.8 billion in February 2026, as exports fell by 0.9% month-on-month to €51.0 billion, while imports jumped 5% to

Data released by Eurostat said producer prices in the Euro Area decreased 0.7% from January, slightly more than the 0.6% fall expected by economists. Prices had increased 0.8% in January. On a yearly basis, producer prices posted a fall of 3%, in line with expectations, following a 2% decrease in January.

Eurozone retail sales declined in February due to a fall in food turnover, data from Eurostat showed. Retail sales dropped 0.2% on a monthly basis in February, in line with expectations, after remaining flat in January.

Year-on-year, retail sales growth slowed to 1.7% in February from 2.1% in the prior month.

Retail sales in the EU27 also decreased 0.3% in February but increased 1.7% from the same period last year.

The UK construction sector continued to shrink in March as new orders declined the most in four months, survey results from S&P Global showed Wednesday. The construction Purchasing Managers' Index declined to 45.6 in March from 44.5 in February.

U.K. house prices decreased 0.5% on a monthly basis in March, reversing February's 0.3% increase as the Iran conflict pushed up inflation expectations and dampened hopes of interest rate reductions, data from the mortgage lender Halifax showed. On a yearly basis, house price growth eased to 0.8% in March from 1.2% in February.