European markets rallied

Frankfurt -The major European stock markets finished higher again on Wednesday, thanks to growing optimism about a potential peace deal between the United States and Iran.

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% to finish at 24,918.69, while London’s FTSE spiked 219.55 points or 2.15% to close at 10,438.66.

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

European markets rallied

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

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

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

European markets rallied

In economic news, Euro area private sector contracted for the first time in nearly a year and a half as the ongoing war in the Middle East 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 Wednesday. Producer prices grew 3.4% on a monthly basis, reversing a 0.6% fall in the prior month. The rate exceeded economists’ expectations of 3.3%.

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% year-over-year in April, reversing March’s increase of 0.5%.

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