European equities rally as Middle East ceasefire lifts sentiment: DAX, CAC, FTSE100

European stock markets surged on Wednesday after news of a two-week ceasefire in the Middle East reduced concerns about potential disruptions to global oil supplies and helped ease inflation worries.

Brent crude prices dropped about 14 percent, moving closer to $90 per barrel amid expectations that energy shipments through the Strait of Hormuz may soon resume.

On the economic front, data from Destatis showed that German factory orders rebounded in February, although the recovery was weaker than analysts had anticipated and came before the outbreak of the Iran conflict.

Orders at German factories rose 0.9 percent month over month in February, reversing the sharp 11.1 percent drop recorded in January, with the increase largely supported by strong demand in the automotive sector.

Compared with the same period a year earlier, total factory orders were up 3.5 percent in February following a 0.3 percent increase in January.

In the United Kingdom, house prices fell 0.5 percent in March on a monthly basis, reversing the 0.3 percent rise seen in February, according to figures released by mortgage lender Halifax. The decline reflected rising inflation expectations linked to the Iran conflict, which has also reduced expectations for interest rate cuts.

On an annual basis, house price growth slowed to 0.8 percent in March from 1.2 percent in February.

In equity markets, Germany’s DAX Index climbed 4.9 percent, France’s CAC 40 Index advanced 4.6 percent and the U.K.’s FTSE 100 Index gained 2.8 percent.

Banking stocks led the rally, with Commerzbank (TG:CBK), Deutsche Bank (TG:DBK), BNP Paribas (EU:BNP) and Credit Agricole (EU:ACA) posting strong gains.

German biotechnology firm Evotec (TG:EVT) also jumped after reporting 2025 results that met expectations and reaffirming its outlook.

French rail manufacturer Alstom (EU:ALO) moved sharply higher after securing a European signaling contract worth around €295 million.

Spirits producer Remy Cointreau (LSE:RCO) also advanced significantly after announcing internal organizational changes.

Pharmaceutical company GSK (LSE:GSK) gained in London after receiving regulatory approval in China for Exdensur, the first ultra-long-acting biologic treatment for chronic rhinosinusitis with nasal polyps.