FX.co ★ European Stocks Extend Gains

The STOXX 50 and STOXX 600 indices experienced a rise of 0.3% on Wednesday, continuing to build on the more than 1% gains observed in the preceding session. This upward momentum was driven by investor relief over the apparent stability of the ceasefire between Israel and Iran. Additionally, there was growing optimism fueled by increased expectations of a potential interest rate cut by the Federal Reserve later this year. This sentiment followed comments by Fed Chair Jerome Powell, delivered during his testimony before the U.S. Congress, which were widely interpreted as dovish. Meanwhile, market participants are turning their attention to the conclusion of the NATO summit in the Netherlands, where geopolitical developments continue to be of significant interest. On the corporate front, notable gains were seen in stocks like ASML Holding, which rose by 2.3%, Philips by 2%, Rheinmetall by 1.5%, as well as Ferrari and Stellantis, which saw increases of 3.6% and 3.7% respectively.