The German DAX index surged 1.3% to close at 24,956 on Monday, marking a decisive rebound for European equities as investors digested a framework agreement between the United States and Iran aimed at ending the ongoing conflict.
The diplomatic breakthrough provided a much-needed catalyst for risk appetite, lifting the benchmark above key psychological levels and signaling a shift in market sentiment following weeks of geopolitical tension.
50% following remarks by Kevin Warsh, before retreating sharply the next day.
The rally comes as the broader market navigates a complex backdrop of shifting US monetary policy expectations.
While the geopolitical de-escalation provided the primary lift for European stocks, US Treasury yields have remained volatile.
The yield on the benchmark 10-year US note spiked to 4.50% following remarks by Kevin Warsh, before retreating sharply the next day.
This whipsaw action in US rates highlights the underlying uncertainty regarding the Federal Reserve's path, even as equity markets price in a more stable geopolitical environment.