ArcelorMittal (up 4.24 per cent), Amadeus (up 2.13 per cent) and Sacyr (up 1.90 per cent) recorded the biggest gains, whilst Acciona (down 7.18 per cent), Acciona Energía (down 2.72 per cent) and Endesa (down 1.45 per cent) were the worst performers on a historic day.
Reported by Singular Bank
The main European indices closed higher, buoyed by diplomatic progress between the United States and Iran and the fall in oil prices. The Euro Stoxx 50 gained 0.9% and the Ibex 35 0.2%. The Stoxx Europe 600 reached a new all-time high, also buoyed by a better-than-expected earnings season.
At the close of European trading, in the United States, the Nasdaq Composite was up 2.1% and the S&P 500 1.3%, driven by technology following Palantir’s improved forecasts. The fall in oil prices dampened inflation expectations and simultaneously boosted both the stock markets and sovereign debt.
At sector level, Technology, Industrials and Healthcare led the Euro Stoxx 50. On the Ibex 35, Materials and Consumer Staples stood out, whilst Energy was the weakest sector in both Europe and Spain due to the correction in oil prices.
The main catalyst of the day was progress in negotiations between the United States and Iran to ease tensions in the Strait of Hormuz. Statements from Qatar and the US Treasury Secretary pointed to the possibility of reaching an agreement in the short term, reducing the risk of disruptions to energy supplies. The news triggered a sharp fall in oil prices, tempered inflation expectations and simultaneously boosted equities and sovereign debt.
The earnings season continued to provide significant support to the stock markets. Earnings for MSCI Europe companies grew by around 14% in the second quarter, and more than half of the companies that have reported results exceeded market estimates. Bayer stood out among European stocks after reporting better-than-expected profit growth, whilst the technology, industrial and mining sectors led the gains.
In the United States, Palantir raised its full-year revenue and operating profit forecasts on the back of strong demand for its data analytics and artificial intelligence solutions. The market reaction boosted the technology sector as a whole and contributed to the Nasdaq’s rise.
A day of falls in sovereign bond yields, driven by moderating inflation expectations.
Brent crude fell by 5.7% to $79 per barrel on expectations that the Strait of Hormuz would reopen.
Gold rose by 0.8% to $4,085 per ounce.
The EUR/USD rose slightly to 1.152.
