BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks closed on a strong note on Wednesday, as the mood turned a bit bullish amid some hopes of a de-escalation in tensions in the Middle East.
According to the New York Times, U.S. has sent Iran a 15-point plan to end the war in the Middle East. The report however acknowledged it is unclear whether Iran was likely to accept the plan as a basis for negotiations but argued the delivery of the plan showed the administration is ramping up efforts to conclude the war.
Despite rejecting the US peace plan as 'excessive' and issued five conditions to end the war, Iran told the United Nations Security Council and the International Maritime Organization that 'non-hostile vessels' may transit the Strait of Hormuz with Tehran's consent.
A sharp drop in crude oil prices helped a bit in easing inflation concerns and contributed significantly to the positive mood in the markets.
The pan European Stoxx 600 climbed 1.42%. Germany's DAX, France's CAC 40 and the U.K.'s FTSE 100 climbed 1.41%, 1.33% and 1.42%, respectively. Switzerland's SMI gained 1.62%.
Among other markets in Europe, Austria, Belgium, Czech Republic, Finland, Iceland, Ireland, Netherlands, Norway, Poland, Portugal, Spain and Sweden closed with strong gains.
Denmark, Russia and Türkiye ended with modest gains, while Greece closed sharply lower.
In the UK market, stocks from mining and financials sectors turned in a fine performance. Airliners moved up as well.
Endeavour Mining and Anglo American Plc climbed about 4.5% and 3.9%, respectively. Fresnillo moved up 3.7%, while Glencore and Rio Tinto gained 2.2% and 1.3%, respectively.
Standard Chartered gained 2.7%, Barclays climbed 2.7%, HSBC Holdings moved up 2.5% and Lloyds Banking Group advanced by nearly 2%. Natwest Group ended 1.75% up.
Pershing Square Holdings, GSK, ICG, Barratt Redrow, Smiths Group, Croda International and Scottish Mortgage gained 3%-4%.
United Utilities climbed 3.2%. The water utility issued a pre-close update ahead of its full-year results for the year ending March 31, 2026, indicating that performance remains in line with expectations.
Standard Life, Intertek Group, Prudential, Lion Finance, JD Sports Fashion, IMI, Rolls-Royce Holdings, National Grid, Melrose Industries, Severn Trent, Halma and Autotrader Group also posted impressive gains.
Entain, Relx, Experian, Bunzl and Shell closed with sharp to moderate losses.
In the German market, Siemens Energy, Infineon, Vonovia, Commerzbank, RWE, Deutsche Bank, Rheinmetall, MTU Aero Engines, Continental, BASF, Scout24, Merck, Symrise, Gea Group, Beiersdorf and Heidelberg Materials moved up sharply.
Lufthansa gained about 2.3% as oil prices fell amid easing hopes of a de-escalation in tensions in the Middle East.
Deutsche Boerse, SAP and Deutsche Telekom closed weak.
In the French market, STMicroelectronics climbed nearly 4.5%. Thales, Sanofi, Societe Generale, Airbus, Legrand and Schneider Electric gained 2%-3%.
ArcelorMittal, Veolia Environment, Eurofins Scientific, Bureau Veritas, Safran, Stellantis, Saint-Gobain, Renault, Pernod Ricard, Engie, BNP Paribas, Credit Agricole, Kering, Bouygues, Dassault Systemes, Michelin and Capgemini gained 1%-2%.
Air France-KLM climbed 2.3% as oil prices fell nearly 4 percent in anticipation of a de-escalation of the Middle East war.
Tubular solutions firm Vallourec surged more than 4% after it secured five contracts for oil country tubular goods (OCTG) products to be delivered in Indonesia.
Orange pared early losses and settled just marginally down. The telecom company said that it has inked a deal with Verdoso with a view to a potential divestment of Globecast, a media services business of Orange.
Unibail Rodamco, Publicis Groupe, Danone and TotalEnergies closed weak.
In economic news, a report from the Ifo Institute said Germany's Ifo Business Climate Index dropped to 86.4 in March 2026, the weakest reading since February 2025, as the escalating Middle East conflict dampens economic sentiment. The index was expected to come in at 86.1, after a revised 88.4 reading in February.
Ifo Current Conditions index in Germany remained unchanged at 86.70 points in March, the same as in February and compared to forecasts of 86.
Data from the Office for National Statistics showed UK consumer prices registered a stable growth and input prices rebounded in February.
Consumer price inflation remained unchanged at 3% in February, as expected. On a monthly basis, consumer prices moved up 0.4%, partially offsetting the January's 0.5% decrease. Monthly inflation matched expectations.
Core inflation that excludes prices of energy, food, alcohol and tobacco rose to 3.2% from 3.1% in the prior month.
Another report from the ONS showed that input prices climbed 0.5% year-on-year in February, in contrast to the 0.4% fall in January. On a monthly comparison, input prices rose at a faster pace of 0.8%, following a 0.3% in January.
Meanwhile, output price inflation eased to 1.7% from 2.5% in January. Month-on-month, output prices slid 0.5% remaining flat in January.
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