European shares rise as energy markets remain volatile
The pan-European Stoxx 600 added 0.64% to 602.31, Germany’s DAX advanced 0.67% to 23,720.76, France’s CAC 40 rose 0.49% to 7,974.49, and London’s FTSE 100 outperformed with a 0.83% rise to 10,403.60
European shares rose on Tuesday as energy markets remained volatile, with oil prices jumping back above the $100 mark after Iran struck oil and gas infrastructure for the first time since the US and Israel began their war on Iran.
The pan-European Stoxx 600 added 0.64% to 602.31.
Germany’s DAX advanced 0.67% to 23,720.76, France’s CAC 40 rose 0.49% to 7,974.49, and London’s FTSE 100 outperformed with a 0.83% rise to 10,403.60.
The FTSE 100 in the UK made modest gains on Tuesday, supported by robust performances in energy stocks and major financial institutions, even as geopolitical tensions in the Middle East lingered, said Patrick Munnelly, market strategy partner at TickMill.
Oil prices were firmly higher amid escalating supply concerns.
Brent crude futures were last up 1.74% on ICE at $101.95 per barrel.
The latest moves followed reports that Iran hit multiple energy assets across the region.
Munnelly added that escalating conflict saw Iran intensify its attacks on the UAE, as the US-Israel confrontation with Tehran entered its third week.
This turmoil has severely disrupted oil shipments through the critical Strait of Hormuz, pushing crude prices up by 4%, he said.
Geopolitical tensions continued to dominate sentiment as the US struggled to rally allied support for securing shipping routes through the Strait of Hormuz, a critical pathway for nearly 20% of global oil flows.
Rudolph said investors were growing more confident that the Iran war will soon end and that the energy shock won’t lead to stagflation.
On the economic front, German investor sentiment deteriorated sharply in March.
The ZEW current conditions index improved slightly to -62.9 from -65.9, but the expectations index slumped to -0.5 from 58.3, far below forecasts for a reading of 38.5.
The ZEW Indicator has collapsed, said ZEW president Achim Wambach.
The escalation in the Middle East spikes energy prices and increases inflationary pressure, he said.
He added: This heightens the risk for the German economy that the emerging trend of economic recovery will slow down.