Reported by Álvaro Romero Mateu
European stock markets have closed with widespread gains amid improved market sentiment following news of progress in talks between the US and Iran to reopen the Strait of Hormuz. The IBEX 35 rose by 2.2% and surpassed 18,300 points, whilst the EuroStoxx 50 advanced by nearly 2.0%. The main European indices moved higher, with lower trading volumes due to the London market being closed. Wall Street remained closed for the Memorial Day bank holiday.
In Asia, the session also had a positive bias, with the Japanese TOPIX rising by around 1.3% and the Nikkei hitting new all-time highs, driven by technology stocks. In China, the CSI 300 rose by 1.6%. The markets in Hong Kong and South Korea remained closed for a public holiday.
In Spain, the fall in oil prices has benefited stocks most sensitive to fuel costs. IAG led the Ibex gains with a rise of over 3.7%, whilst Repsol (down 2.2%) was the only stock in the index to fall, penalised by the correction in Brent crude.
In Europe, the mood was positive in the more cyclical and technology sectors. Infineon stood out in Germany with a rise of nearly 4.5%, and the semiconductor sector maintained its lead for the session, supported by appetite for technology and artificial intelligence.
In the United States, there was no trading session due to the Memorial Day holiday. Futures traded in positive territory during the European session, in line with the improved sentiment towards risk assets, although without a closing reference on Wall Street.
Fixed Income
A day of falling yields on European sovereign debt. The drop in oil prices eased fears of a fresh spike in inflation and encouraged bond buying.
The yield on the 10-year German Bund stood at 2.94%, after falling by around 9 basis points from the previous close. In Spain, the yield on the 10-year bond fell to 3.38%, also down by approximately 9 basis points, leaving the risk premium at around 43 basis points.
In the United States, the bond market was closed for Memorial Day. The benchmark 10-year Treasury remained at around 4.56% from the last available close.
Commodities and currencies
Oil has seen sharp falls amid expectations of an agreement between the US and Iran that would allow for the normalisation of traffic through the Strait of Hormuz. Brent stood at around $97.5, down by nearly 5.9%, and WTI hovered around $91.
In precious metals, gold traded at around $4,570 per ounce and silver at around $78, in a session with lower trading volumes due to public holidays in the US and the UK.
In currencies, the dollar lost some ground as a safe-haven asset. The EUR/USD rose to the $1.164 level.