European equity markets moved sharply higher on Wednesday after U.S. President Donald Trump said the war with Iran could come to an end within two weeks even without an agreement to reopen the Strait of Hormuz. The comments helped ease investor concerns after weeks of volatility triggered by the conflict. Still, analysts cautioned that it may take another six to eight weeks before oil shipments return to normal levels.
“Even if that peace is here tomorrow, still we will not go back to normal in a foreseeable future,” the European Union’s energy commissioner said during a press conference following a meeting of EU energy ministers.
On the economic front, a new survey showed that the eurozone’s manufacturing sector continued to expand. The region’s manufacturing PMI rose to 51.6 in March from 50.8 in February, reaching its highest level in 45 months.
Market gains were broad across the region. Germany’s DAX was up 2.5%, France’s CAC 40 gained 1.9%, and the U.K.’s FTSE 100 climbed 1.8%.
Banking stocks led the rally, with Commerzbank (TG:CBK), Deutsche Bank (TG:DBK), BNP Paribas (EU:BNP), Credit Agricole (EU:ACA) and Barclays (LSE:BARC) posting strong gains.
Dutch insurer Aegon (EU:AGN) also advanced after announcing plans to extend CEO Lard Friese’s leadership term through 2030.
Shares of GSK (LSE:GSK) moved higher as well after the British pharmaceutical group and Shionogi & Co. completed a transaction restructuring the ownership of ViiV Healthcare.
Real estate investment trust Derwent London (LSE:DLN) also surged after agreeing to sell Horseferry House for £131.8 million.
Meanwhile, online trading platform IG Group Holdings (LSE:IGG) gained ground after unveiling a £125 million share buyback programme.
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