European stocks rebounded as positive earnings reports from major companies lifted investor sentiment following concerns about interest rate hikes. The Stoxx Europe 600 index rose by 0.4%, with mining stocks leading the gains fueled by rising iron ore prices and improving demand from China. Companies like Rio Tinto, Adidas, and LVMH posted strong earnings, boosting the market. However, the technology sector struggled, with ASML Holding NV’s shares plunging after missing first-quarter order estimates.
Meanwhile, Treasury yields held steady near 2024 highs, and the dollar remained strong after Federal Reserve Chair Jerome Powell suggested a longer timeline for achieving the Fed’s inflation target. Market sentiment shifted drastically from expecting rate cuts to doubting any cuts at all. Tensions in the Middle East added to the market uncertainty as Israel contemplated its response to an attack from Iranian soil, while Saudi Arabia and the United Arab Emirates called for restraint to prevent escalation.
In the commodities market, European natural gas prices rose for the fifth consecutive day, oil prices dipped as traders awaited Israel’s response to Iran’s attack, and gold remained near a record high. Key events to watch this week include Eurozone CPI data, Fed releases, and speeches from central bank officials. The market continues to be driven by earnings reports, economic indicators, and geopolitical tensions, shaping investor sentiment and market movements.
