15.06.202616:00:44UTC+00European Stocks Rise to Records

European equities climbed to fresh record highs on Monday after the US and Iran reached a deal to suspend hostilities. The Euro STOXX 50 rose 0.8% to an all-time high of 6,236, while the STOXX Europe 600 advanced 0.3% to 635. The agreement, expected to be signed on Friday, is reported to restore energy export flows through the Strait of Hormuz, easing oil prices and pushing sovereign bond yields lower across Europe’s largest economies. Money markets have pared back expectations for monetary tightening and now price in just one additional rate hike each from the ECB and the BoE by year-end. The improved outlook for credit growth lifted bank shares, with Santander, Deutsche Bank, and BBVA gaining between 3% and 4.56%. Industrial stocks also benefited from expectations of stronger demand and lower energy costs, with Safran climbing 3.5% and Siemens up 2.2%.