European Markets Rally On West Asia Peace Optimism

FRANKFURT, May 7 (Bernama-dpa-AFX) -- Major European stock markets finished higher again on Wednesday, thanks to growing optimism about a potential peace deal between the United States and Iran, reported dpa-AFX.

A massive plunge in crude oil prices and easing fears of fuel-led inflation also boosted market sentiment as the markets opened higher and remained firmly in the green throughout the day.

Strong early performances from US stocks and solid corporate earnings also lifted market sentiment considerably. Germany's DAX surged 516.99 points or 2.12 per cent to finish at 24,918.69, while London's FTSE spiked 219.55 points or 2.15 per cent to close at 10,438.66.

The CAC 40 in France rallied 237.11 points or 2.94 per cent to end at 8,299.42, and the SMI in Switzerland jumped 231.09 points or 1.77 per cent to finish at 13,283.26.

In Frankfurt, MTU Aero Engines skyrocketed 10.14 per cent, while Airbus surged 6.04 per cent, Volkswagen accelerated 4.39 per cent, Deutsche Bank jumped 3.87 per cent, Vonovia strengthened by 3.05 per cent, Heidelberg Materials climbed 2.46 per cent, Deutsche Telekom advanced 1.76 per cent, Deutsche Post improved 1.21 per cent, Deutsche Boerse sank 2.02 per cent and BASF dropped 1.74 per cent.

In London, Prudential surged 7.39 per cent, while Anglo-American soared 7.38 per cent, Antofagasta spiked 7.22 per cent, Rolls-Royce accelerated 6.42 per cent, Diageo jumped 6.34 per cent, Barclays climbed 5.51 per cent, Lloyds banking Group collected 4.81 per cent, Unilever gained 2.39 per cent, British American Tobacco rose 1.95 per cent, British Petroleum tumbled 3.72 per cent and Shell sank 3.05 per cent.

In Paris, Safran surged by 8.96 per cent, while ArcelorMittal rallied 8.03 per cent, Société Générale vaulted 5.55 per cent, BNP Paribas expanded 5.22 per cent, Crédit Agricole climbed 3.60 per cent, Carrefour improved 2.30 per cent, Orange gained 1.14 per cent, Sanofi rose by 0.65 per cent  and Engie lost 0.58 per cent.

In economic news, Euro area private sector contracted for the first time in nearly a year and a half as the ongoing war in West Asia acted as a drag on services activity, final results of the purchasing managers' survey by S&P Global showed on Wednesday. The composite output index fell to 48.8 in April from 50.7 in the previous month. The reading was above the flash estimate of 48.6.

Eurozone producer prices increased in March due to a strong rebound in energy prices, Eurostat said on Wednesday. Producer prices grew by 3.4 per cent on a monthly basis, reversing a 0.6 per cent fall in the prior month. The rate exceeded economists' expectations of 3.3 per cent.

Sweden's consumer prices decreased for the first time in six years in April amid a sharp fall in food costs, flash data from Statistics Sweden showed on Wednesday. The consumer price index, or CPI, dropped 0.1 per cent year-over-year in April, reversing March's increase of 0.5 per cent.

France's industrial production rebounded at a stronger-than-expected pace in March, data from the statistical office INSEE showed on Wednesday. Industrial output grew by 1.0 per cent on a monthly basis in March, reversing a 0.9 per cent drop in February. Production was expected to grow 0.5 per cent.

-- BERNAMA-dpa-AFX