European stock markets record their biggest gain in nearly a year as market expectations for the end of the Iran war increase.

As expectations for the Iran-war nearing its end in the market gained momentum, European stocks surged to their biggest one-day gain in nearly a year, recouping some of last month’s losses.

The STOXX Europe 600 index closed up 2.5%, tracking gains across global equities. Except for the energy sector, all European sectors advanced. Energy stocks fell as Trump hinted that the war could end within two to three weeks.

On the individual stock level, the biggest gain went to the weakest performers since the conflict began. Shares of Rolls-Royce, an aircraft engine manufacturer, and Siemens Energy rose as much as 10% each, recovering most of their declines from last month. The STOXX 600 Banks (Price) index rose 4.5% on Wednesday, making it the best-performing sector.

The STOXX 600 index plunged 8% in March, marking its largest monthly drop since June 2022. Morgan Stanley strategists said that with signs of easing in the Middle East situation, their view of European stocks turned constructive.

However, some investors remain cautious. Although Trump’s remarks suggest the United States has largely achieved its military objectives, Iran continued firing in the Middle East on Wednesday, while Israel and the United States continued to bomb Iran as well. With the Strait of Hormuz still largely closed, Brent crude futures have returned to above $100 a barrel.

“This looks very much like a rebound wave, with investors buying at the end of the last leg lower, but I’m skeptical,” said Alexandre Baradez, chief market analyst at IG in Paris. “I expect market volatility to intensify further over the coming days. Before the situation in the crisis becomes clear, the market will continue to swing between gains and losses for several more trading days.”

A vast amount of information and precise analysis—right in the Sina Finance app

责任编辑：丁文武