European Stocks Fall as Fragile US-Iran Ceasefire Sparks Oil Price Volatility

European stocks slipped as investor optimism from a brief rally faded.

The STOXX 600 was down 0.2%, Germany's DAX fell 1.1%, and France's CAC 40 dropped 0.2%.

@coindesk

The energy sector gained almost 2% as oil prices rose on the day.

Tech and luxury stocks were under pressure, with SAP dropping 6.8% and LVMH sliding 3%.

Traders still expect two quarter-point ECB tightening moves before year-end.

FTSE 100 futures pointed to a modestly firmer open, rising around 0.4%.

The guarded advance followed a strong 3.7% climb in the STOXX Europe 600 the previous day.

ABC Bourse

President Trump said US forces would remain until a real agreement with Iran is fully complied with.

Investors were treating the advance as a relief rally rather than a full return to confidence.

Travel, industrial, and banking stocks led the move.

Oil prices rebounded with Brent crude trading around $97 per barrel.

“Oil prices plunge and shares jump on US-Iran ceasefire plan Global oil prices have fallen sharply and stock markets jumped after the US and Iran agreed to a conditional two-week ceasefire deal that includes the reopening of the key Strait of Hormuz waterway”

BBC

Brent crude was still roughly 40% higher than pre-conflict levels.

Economists expect the surge in energy prices to show up globally within inflation figures.

The Bank of England has held its key interest rate at 3.75 percent.

Markets expect the BoE to hold rates again at its next meeting on April 30.

Cyclical and growth sectors felt the heat with industrials down 1%.

Luxury stocks plunged 2.3%.

Business Insider

Travel, banks, and tech all slipped into the red.

Energy was the lone bright spot, gaining 0.9%.

Tui shed nearly 4% after a 13% recovery in the previous session.