European stocks close up 2.5%, military and banking stocks lead the gains

Investors are longing for the Middle East war to be nearing the end; optimistic sentiment is saturating the market. After the U.S. Dow Jones Industrial Average surged more than 1,000 points on the previous day, it rose further on Wednesday. European equities rebounded sharply as well, with the pan-European Stoxx 600 closing up 2.5% at 597 points, nearing the intraday high. Over the past three trading days, it has gained 3.9% in total. Technically, it has held above the 200-day moving average for three consecutive days, broken above the 100-day line, and is pressing up toward the 50-day line.

Defense-related stocks rallied. Rheinmetall’s share price in Germany jumped 9.5%; Siemens Energy rose 7%; Italian bank shares surged notably, with UniCredit’s stock price climbing 5.6%.

In the UK, the FTSE 100 closed at 10,364 points, up 1.85% or 188 points. In Germany, the DAX closed at 23,298 points, gaining 2.73% or 618 points. In France, the CAC 40 closed at 7,981 points, up 2.1% or 164 points. In Italy, the FTSE MIB closed at 45,714 points, soaring 3.17% or 1,405 points. In Spain, the IBEX 35 closed at 17,580 points, up 3.11% or 530 points.

U.S. President Trump said the U.S. may end its conflict with Iran within two to three weeks, adding that Iran has put forward a ceasefire request and that the U.S. will consider the Iranian proposal after the Strait of Hormuz reopens. However, Iran’s Islamic Revolutionary Guard Corps warned it will target companies and institutions linked to the Middle East conflict involving 18 U.S. high-tech and artificial intelligence enterprises, including Boeing, Apple, Google, Tesla, Microsoft, and others.