Euro STOXX 600 Index Hits All-Time High
N.R. Finch
The STOXX 600 closed Monday at a record 638.53, up 0.9% on the day, after the U.S. and Iran reached a preliminary deal to end hostilities and reopen the Strait of Hormuz — the single biggest overhang on European equities for nearly two months is lifting.
What triggered this rally?
President Trump confirmed Sunday that Washington and Tehran have agreed to an immediate ceasefire and the reopening of the Strait of Hormuz, the world's most critical oil-shipping chokepoint.
Iran's deputy foreign minister Gharibabadi said on state television that the deal is finalized and set to be formally signed this Friday.
This means → markets are not just pricing in a truce; they are pricing in a document with a signing date. Friday's ceremony is the next catalyst.
Why did Europe lag behind the U.S. and Asia in recovering?
By mid-March, European markets had fallen into an official correction — down 10% from their recent peak — while U.S. and major Asian indices had already reclaimed and surpassed pre-war highs.
In plain terms = the same war hit different markets differently. U.S. investors saw limited direct economic exposure, so American stocks bounced faster. Europe sits closer to Middle Eastern energy routes and felt the risk more acutely.
A structural factor compounds the gap: tech stocks carry a lower weight in European benchmarks, and tech has been the lead sector in the global rebound — giving U.S. and Asian indices an extra recovery engine.
How much did national indices gain?
Italy's FTSE MIB led at +2.5%; Germany's DAX rose 1.8%; France's CAC 40 gained 1.6%; the UK's FTSE 100 added 0.9%.
This reflects a proximity pattern — countries more dependent on Middle Eastern energy saw sharper rebounds. Italy and Germany rely on that supply chain more heavily than the UK.
Which sectors benefited the most?
Airlines were the biggest winners as falling oil prices cut fuel costs directly. Air France-KLM rose 5.2%, Lufthansa 5.6%, and IAG (British Airways' parent) 4.6%.
Rate-sensitive names also gained: logistics-property group Segro climbed 2.6%; commercial-property giant Unibail-Rodamco-Westfield added 1.4%.
This means → the capital-flow logic is clear — money moved first into airlines, the most immediate beneficiaries of cheaper oil, then into property stocks that gain when rate expectations ease. Near impact first, then further out.
Content is for reference only, not financial advice.