FX.co ★ European Stocks Rise as Trump Extends Cease Fire

European stocks inched higher on Wednesday, with the STOXX 50 up 0.5% and the STOXX 600 advancing 0.3%. Market sentiment improved after President Trump announced he would extend the ceasefire with Iran indefinitely, just ahead of its scheduled expiry, to allow more time for peace talks. He also signaled that no new military actions were planned, though the blockade of the Strait of Hormuz would remain in place.

In a further development, reports indicated that Iran had received “some indication” that the US might be prepared to ease the blockade. Nonetheless, uncertainty remains regarding the timing and likelihood of any formal negotiations.

The corporate earnings season also drove market moves. Shares in ABB climbed more than 5% after the company beat expectations and raised its guidance. By contrast, Moncler slipped 1.5% as its results failed to convince investors. Deutsche Telekom lost 1.6% following a Bloomberg report that the company was exploring a full merger with T-Mobile US, a transaction that could rank as the largest M&A deal on record.