European stocks hit two-week high on earnings and peace deal
The STOXX 600 rose 1.5% on Middle East peace optimism and lower oil prices. Strong earnings from Novo Nordisk and BMW further supported the two-week high.
The X STOXX EUROPE 600 1C rose 1.5% to 618.89 on May 6 morning as Middle East peace optimism drove a two-week high. Regional indices in Germany, France, and the United Kingdom gained between 1.4% and 1.7%. Investors are weighing improved geopolitical sentiment against a 2.3% expected earnings growth rate for European corporates this quarter, marking the second consecutive session of gains for the pan-European index.
Oil prices fell after the United States reported progress toward a peace agreement involving Iran. Natixis head of global market strategy Mabrouk Chetouane said energy prices previously weighed on European growth and corporate absorption capabilities. Chetouane noted that earnings are growing faster in the U.S. than in Europe.
