European markets recorded a strong rally, driven by the announcement of a ceasefire in the Middle East. This pushed major indices like the STOXX 600 and Germany’s DAX to break through key technical resistance levels. The moves reflect a shift in overall sentiment towards optimism, supported by easing political risks and a rise in risk appetite. Cyclical sectors such as industry and technology saw strong inflows, signaling a rotation of liquidity into growth stocks after a period of caution.
Despite the general market improvement, the oil and gas sector came under significant pressure, losing more than 3.5% as crude prices fell to their lowest levels in two weeks. Technically, Brent crude faced strong resistance near the $72 level and failed to confirm a breakout, triggering a corrective move. Continued selling pressure could lead the price to test key technical support zones around $65.50–$66. The recent drop reflects fading concerns over energy supply disruptions following the geopolitical de-escalation.
The travel and leisure sector led the gains, rising over 4.3%, supported by a rebound in risk appetite and expectations of improved consumer demand. On the corporate front, AstraZeneca shares climbed after U.S. authorities approved a new drug for lung cancer treatment. In contrast, SThree showed revenue weakness due to challenges in the labor market, while Bunzl announced an acquisition deal in Latin America while maintaining a stable financial outlook for the second half of the year.
Gold prices declined by more than 1% as demand for defensive assets weakened, with investors returning to equities and industrial commodities. Gold broke a key technical support level near $3,340, suggesting that the downward trend may continue unless strong catalysts emerge to support a rebound. Meanwhile, the U.S. dollar index fell by around 0.3%, supporting modest gains in the euro and yen. Silver also dropped by 0.6%, while platinum and copper posted mixed performances.
The key event this week remains Federal Reserve Chair Jerome Powell’s testimony before Congress, amid rising political pressure from the U.S. administration to cut interest rates. Markets are closely watching for any subtle signals about the Fed’s future intentions, especially given the current policy stance despite a slowdown in some economic indicators. From a market perspective, any shift in Powell’s tone could trigger sharp moves in the dollar, equity markets, and U.S. bond yields, making his speech a pivotal moment for shaping trading trends in the coming days.
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