Markets Europe

• European equity markets recovered from a shaky start on July 20, 2026, with major indices ending the morning session slightly higher. • Oil prices retreated during the session as Iran indicated a willingness to consider mediation proposals. • The shift in sentiment reflects a cautious optimism among investors regarding geopolitical tensions and energy stability.

• Brent crude oil prices surged above $90 per barrel following escalating U.S.-Iran tensions and renewed shipping disruptions in the Strait of Hormuz. • The Canadian dollar remains firm following the Bank of Canada's decision to maintain its policy rate at 2.25% for the sixth consecutive meeting. • The Bank of Canada adopted a balanced tone, noting that while inflation pressures are easing, economic growth is projected to strengthen later in the year.

• European stocks, including the Stoxx 600, experienced an upward trend driven by positive Purchasing Managers' Index (PMI) data. • The German DAX reached record highs as investor sentiment improved due to easing fears regarding further interest rate hikes from the U.S. Federal Reserve. • This market movement reflects a shift in investor confidence as economic indicators suggest resilience despite ongoing monetary tightening.

• Major Western European stock indices mostly declined during Wednesday's trading session, though the pan-European Stoxx Europe 600 composite index managed a slight gain of 0.1% to close at 642.71 points. • Specific losses were recorded by Germany's DAX (-0.59%), Italy's FTSE MIB (-0.85%), Spain's IBEX 35 (-0.42%), and Britain's FTSE 100 (-0.13%). • France's CAC 40 provided a rare positive outlier among the major national indices, ending the session with a 0.19% increase.

• European shares remained flat on Wednesday, with the pan-European STOXX 600 index holding steady at 641.83 points. • Market stability was driven by a conflict between positive corporate earnings and geopolitical instability, specifically escalating tensions in the Middle East. • Strong financial results from chip equipment manufacturer ASML and luxury goods group Richemont (owner of Cartier) provided upward pressure on the markets.

• ASML is projected to report a profit increase for Q2, while IBM shares have experienced a significant plunge amid shifting market sentiment regarding AI and chip-making. • China's economic growth slowed to 4.3% in the first half of the year, missing economist expectations and highlighting a trend of domestic weakness despite strong exports. • Investors are monitoring the Bank of Canada, which is widely expected to hold interest rates steady during its announcement on Wednesday.

• European markets remained volatile on July 13, 2026, with oil prices holding higher as investors focused on escalating tensions between the US and Iran. • Chip stocks surged by 10% while gold prices plunged, a shift driven by a strengthening US dollar that some traders suggest signals a potential regime change. • Concerns are mounting over US fiscal health, as national debt has now exceeded the size of the economy and the Treasury is borrowing $155 billion per month.