The global scholarships between relief and caution in the face of the Iran-Israel truce

PARIS (AWP/AFP) – World scholarships were divided on Wednesday between optimism. Nevertheless, caution in the face of the Iran -Israel truce perceived as still fragile but which reduces the geopolitical risk premium. Similarly, The main Europoean markets were playing in green.

A fragile truce between Iran and Israel is in force. Moreover, Israeli Prime Minister Benjamin Netanyahu praised a “historic victory” against Tehran and his nuclear program. Furthermore, Iran. In addition, of which three key nuclear sites were bombed on Sunday by the United States, also shouted “victory” and reaffirmed its “legitimate rights” to continue its atomic program for civil use.

In action markets, mood oscillates between relief and caution. Similarly, In the first exchanges in Europe, the Paris Stock Exchange took 0.16%, Frankfurt 0.14%, London 0.16%and Milan 0.30%. Furthermore, The Swiss Stock Exchange saw its SMI flagship index Grushing 0.20% around 9:45 global scholarships between relief caution am.

In Asia, on the Tokyo Stock Exchange, the Nikkei star index ended up 0.39%. For example, In the last exchanges, the Hong Kong Stock Exchange took 1.23%. In continental China, the composite index of Shanghai won 0.99% and that of Shenzhen 1.65%.

“Optimism concerning the maintenance of the fragile ceasefire between Iran. Israel has spread on the markets, doping actions, but doubts begin to emerge as to the stability of this truce,” comments Susannah Streeter, responsible for the markets of Hargreaves Lansdown. A classified confidential document of American intelligence has established that the American strikes on Iran had delayed its nuclear program for only a few months. without destroying it completely, several American media reported on Tuesday.

This report “has rekindled fears of a possible resumption of hostilities”, notes Ms. Streeter.

Another point of attention for the markets: the president of the United States Central Bank (Fed) Jerome Powell will be. auditioned in global scholarships between relief caution front of the US Senate on Wednesday.

He repeated Tuesday before the financial commission of the House of Representatives which he saw “no emergency” to lower interest rates. against the current of other members of the institution and especially Donald Trump.

Defense in the viewfinder

The eyes are also turned towards the NATO summit in Hague on Wednesday. where member countries should engage in a substantial increase in their military expenses, up to 5% of their gross domestic product (GDP) by 2035. “This agreement could support the prospects of the defense sector. even if a large part of the expenses of spending is already integrated into valuations”, notes Ms. Streeter.

Around 9:15 am in Paris, Thales took 0.71% and Dassault Aviation 1.03%. In London, Bae Systems earned 0.67%. In Frankfurt, Rheinmetall advanced 1.39% and Hensoldt by 2.18%, Saab 1.15% in Stockholm and Leonardo from 1.49% in Milan.

At the end of 2024. only 22 global scholarships between relief caution countries out of the 32 NATO member states had reached the target of 2% of military spending, retained in 2014 during a previous summit of the Alliance.

In Germany. the German government presented its budgetary trajectory over five years on Tuesday, breaking with the dogma of rigor to try to relaunch its economy and rearm.

On their own. German military spending should display the colossal amount of 162 billion euros in 2029, more than triple of its defense budget before the Russian invasion of Ukraine.

Moderate oil increase

On the oil side, the price of the barrel of Brent from the North Sea took 1.62% to 68.23 dollars and that of its American equivalent, WTI, won 1.69% at 65.46 dollars around 9:15 am, thus slightly resuming the field after its heavy losses of the day before.

The strategic passage off Iran from the “Strait of Ormuz remains open. it does not seem to be that global scholarships between relief caution Iran wishes to close it, which explains why the premium attached to the price of oil has been reduced during the last sessions,” explains Kathleen Brooks, director of research at XTB.

“Relaxation on the energy markets is excellent news for all those who do not want to see higher oil prices result in accelerated inflation. a more restrictive monetary policy,” said Ipek Ozkardeskaya, of Swissquote Bank.

AFP/VJ