By William Collins, consultant in stock markets – Eurasia Business News, May 25, 2026. Article no 3005

The pan-European Stoxx 600 (STOXX) rose 0.6% at the start of week, to their highest levels since March 2, boosted by growing optimism over a potential U.S.-Iran deal reached over the weekend. Stocks in Europe were also tracking their Asian counterparts higher after Japan’s Nikkei 225 breached 65,000 on Monday for the first time.

London (UKX) +0.22%

Germany (DAX:IND) +1.18%

France (CAC:IND) +1.18%

Investors are responding to hopes that tensions around Iran and the Strait of Hormuz may ease, which has helped push oil lower and lifted sentiment across European markets. The DAX in particular has been among the strongest performers, with recent gains bringing it close to record territory.

Among equities, bank stocks led the rally, with BBVA climbing 2.5%, Santander gaining 2%, UniCredit rising 2%, and BNP Paribas advancing 1.7%. Industrial shares also posted solid gains, while airlines surged as lower fuel prices boosted sentiment. Oil prices fell more than 6% after President Donald Trump’s comments, easing pressure on investors.

Read also : 7 ways to retire comfortably with $1 million

Why Europe benefits

Europe is more sensitive than the U.S. to energy-price shocks because higher oil costs can squeeze consumers, manufacturers, and transport-heavy industries. When oil falls, the market often reads that as relief for inflation and possibly less pressure on central banks to stay restrictive

Coming up in the session: No major events lined up.

In the bond market, the yield on the US 10-year Treasury was down 3 basis points to 4.56%.

UK’s 10-year yield was down 1 basis point to 4.89%.

Germany’s 10-year yield was down 7 basis points to 2.96%.

Read also : Tax Management strategies for Digital Nomads

Advertisements

Our community already has nearly 245,000 readers!

Subscribe to our Telegram channel

Follow us on Telegram, Facebook and Twitter

© Copyright 2026 – Eurasia Business News. Article no. 3005