European equities opened strongly higher on Wednesday, with gains visible across most sectors, as investors reacted positively to news of a conditional ceasefire agreement between the United States and Iran that eased weeks of geopolitical tension in the Middle East.
German carmakers were among the top performers in early trading. Shares of Porsche SE (TG:PAH3), Mercedes-Benz Group (TG:MBG), Porsche AG (TG:P911), Volkswagen (TG:VOW3) and BMW (TG:BMW) all climbed between 4% and 7% by 08:02 GMT.
Luxury goods companies also posted strong gains, with Kering (EU:KER), LVMH (EU:MC) and Hermès (EU:RMS) advancing roughly 6% to 7%.
The improvement in market sentiment followed comments from U.S. President Donald Trump, who said he had agreed to pause planned attacks on Iran for two weeks. The suspension was tied to the immediate reopening of the Strait of Hormuz and comes amid indications of progress on a 10-point proposal from Tehran.
Earlier on Tuesday, Trump had threatened to wipe out the entirety of the country’s civilization if Tehran did not cede to his demands by 8 p.m. ET. Trump added that the U.S. “will be helping with the traffic buildup” in the strait.
Iranian Foreign Minister Abbas Araghchi said on behalf of the country’s Supreme National Security Council that Tehran’s armed forces will “cease their defensive operations.”
European banking stocks also rallied strongly. Commerzbank (TG:CBK) surged nearly 10%, while Deutsche Bank (TG:DBK) gained 7.3%. Spanish lenders including BBVA (TG:BBVA), CaixaBank (BIT:1CABK), Banco Sabadell (BIT:1SAB), Bankinter (TG:BAKA), Banco Santander (LSE:BNC) and Unicaja Banco (TG:7UB) rose between 3.5% and 8%.
French banking groups BNP Paribas (EU:BNP), Société Générale (EU:GLE) and Crédit Agricole (EU:ACA) climbed between 5% and 10%, while Italy’s FTSE Italia All-Share Banks index gained 6.5%.
European semiconductor companies also posted strong advances. BE Semiconductor Industries (EU:BESI), ams-OSRAM, ASML (EU:ASML), Soitec (EU:SOI) and STMicroelectronics (BIT:STMMI) jumped between 5% and 11%.
Energy companies moved in the opposite direction as oil prices dropped below the $100 level following the ceasefire announcement. Brent crude futures fell nearly 14% to $94.30 at the time of writing, while WTI futures declined more than 15% to $95.77.
European energy shares declined sharply on Wednesday as oil prices plunged after the United States and Iran agreed to a conditional ceasefire, easing a conflict that has lasted more than five weeks and resulted in more than 5,000 deaths across nearly a dozen countries, including over 1,600 civilians in Iran.
Shares of Shell plc (LSE:SHEL) fell by more than 6%, while BP (LSE:BP.) dropped about 8%. TotalEnergies (EU:TTE) declined roughly 5.4%, and Eni (BIT:ENI) slid 7.2% by 07:22 GMT. Elsewhere, Galp Energia (EU:GALP) and Repsol (BIT:1REP) were also lower, falling around 6.2% and 8% respectively, while Maurel & Prom (EU:MAU) dropped as much as 18.7%.
The sell-off followed a sharp drop in crude prices. Brent crude fell around 13% to $94.80 per barrel—its lowest level since March 25—after hitting an intraday low of $91.70. U.S. benchmark WTI dropped nearly 15% to $96.21.
Broader equity markets, however, moved higher. The FTSE 100 climbed 2.7%, Germany’s DAX gained nearly 5%, France’s CAC 40 rose 3.4%, and Europe’s Stoxx 600 advanced 3.6%.
U.S. markets also pointed upward, with S&P 500 futures rising 2.6% to 6,828.50. Asian equities closed the session higher as well, with Japan’s Nikkei advancing 5.4%, while China’s CSI300 and Hong Kong’s Hang Seng rose 3.4% and 3.1% respectively.
The easing of tensions came after U.S. President Donald Trump announced late Tuesday that he had agreed to pause planned attacks on Iranian infrastructure for two weeks.
The move was “subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz,” he wrote on Truth Social.
Iranian Foreign Minister Abbas Araghchi said on behalf of the country’s Supreme National Security Council that Tehran’s armed forces will “cease their defensive operations.”
European airline shares surged on Wednesday, rising between 8.9% and 13.6% after oil prices dropped sharply following signs of geopolitical de-escalation between the United States and Iran, easing fuel cost pressures across the aviation sector.
Airline groups including Ryanair (NASDAQ:RYAAY), International Airlines Group (LSE:IAG), Lufthansa (TG:LHA) and Air France-KLM (EU:AF) all moved higher as crude prices declined after U.S. President Donald Trump agreed to suspend planned military strikes against Iran for two weeks. The move reduced the immediate risk of prolonged disruption to global energy supplies.
The agreement came just hours before a U.S. deadline for possible military action and signals a temporary pause in tensions that had threatened key oil shipping routes.
Iran also indicated it could halt defensive operations under a broader framework, provided attacks cease and coordination continues around maritime access.
A major focal point during the crisis had been the Strait of Hormuz, a crucial channel for global oil shipments that carries roughly 20% of the world’s oil consumption.
Shipping through the strait had faced disruption during weeks of rising hostilities, fuelling fears of supply shocks and pushing oil prices higher.
After Washington signalled support for efforts to stabilise traffic through the waterway, markets quickly reassessed the risk to energy supply. Brent and U.S. crude futures dropped sharply, with oil prices falling roughly 13.2% to 14.8% as of 03:44 ET (07:44 GMT).
Lower oil prices are typically a major benefit for airline operators, as jet fuel represents a substantial portion of operating costs. The sharp decline in crude prompted investors to revise earnings expectations across the sector, triggering a broad rally in European aviation stocks.
The surge also reflects a rebound from earlier weakness in airline shares, which had been under pressure due to rising fuel costs and heightened geopolitical uncertainty in recent weeks.
UK equities moved higher on Wednesday as global markets reacted positively to reports that the United States and Iran had agreed to a two-week ceasefire ahead of a deadline previously set by President Donald Trump.
Sterling also strengthened during early trading while European markets posted gains. As of 0704 GMT, the blue-chip FTSE 100 was up 2.7%, while the British pound climbed 1.04% against the dollar to 1.3430. Germany’s DAX rose 5.2%, and France’s CAC 40 advanced 1.8%.
“…I agree to suspend the bombing and attack of Iran for a period of two weeks. This will be a double sided CEASEFIRE! The reason for doing so is that we have already met and exceeded all Military objectives, and are very far along with a definitive Agreement concerning Longterm PEACE with Iran, and PEACE in the Middle East,” Trump posted on Truth Social.
UK round-up
UK Prime Minister Keir Starmer is travelling to the Middle East on Wednesday to meet regional allies and support ongoing ceasefire efforts following the agreement reached overnight.
Starmer welcomed the development, saying the ceasefire offers a moment of relief for both the region and the wider world. During the visit, he is expected to hold discussions focused on ensuring that the reopening of the Strait of Hormuz remains permanent. The waterway is one of the most important global routes for oil shipments.
House prices in the UK declined by 0.5% in March, bringing the average property value to £299,677, according to data released by Halifax.
The drop follows a 0.3% rise in February, while annual house price growth slowed to 0.8%, down from 1.2% the previous month.
Amanda Bryden, Head of Mortgages at Halifax, said the slowdown reflects uncertainty linked to the conflict in the Middle East. Concerns about rising energy costs have pushed up inflation expectations, which in turn has lifted mortgage rates and reduced confidence that interest rates will be cut this year.
Shell plc (LSE:SHEL) said its indicative refining margin for the first quarter of 2026 increased to $17 per barrel. The company also warned that extreme commodity price volatility is expected to result in a significant working capital outflow.
Shell added that working capital movements for the quarter are projected to fall between negative $15 billion and negative $10 billion, reflecting the impact of sharp price swings on inventories and receivables.
Renishaw plc (LSE:RSW) announced the appointment of John Shipsey as Chief Financial Officer and Executive Director, effective 13 April 2026.
Shipsey brings extensive senior leadership experience to the precision engineering company. He previously served as CFO at Dyson for 12 years, Smiths Group for five years and Featurespace for two years.
Shares in Gamma Communications Plc (LSE:GAMA) surged more than 13% on Wednesday after the company confirmed it is holding preliminary discussions with potential acquirers regarding a possible takeover.
The UK-based telecommunications provider said it is currently engaged in early-stage talks with several interested parties to evaluate whether a potential transaction could deliver greater value to shareholders than continuing as an independent company.
Gamma emphasised that the discussions do not represent a firm offer and that there is no certainty a formal bid will emerge, nor clarity on the potential terms of any proposal. The company described the talks as being at a preliminary stage.
Following the announcement, Gamma has entered an official “offer period” under the UK Takeover Code, which imposes additional disclosure requirements on the company and relevant parties during the process.
The UK Takeover Panel has also granted Gamma a waiver allowing it to withhold the identities of the potential bidders unless they are revealed through market speculation.
More about Gamma Communications
Gamma Communications Plc is a UK-based telecommunications provider delivering voice, data and cloud communication services to businesses and public sector organisations. The company focuses on unified communications, connectivity and collaboration tools, supplying its solutions through a network of channel partners across the UK and Europe.
Group Eleven Resources – How the EU Secures Critical Metals
Europe is under pressure to act! The projects of Group Eleven Resources (TSXV:ZNG) (USOTC:GRLVF) in Ireland appear quite helpful. This is because the Canadian exploration company has focused on discovering significant zinc deposits and, since its founding, has built up an extensive license portfolio in one of Europe’s most productive zinc regions. Following a well-defined selection process, it now holds numerous exploration licenses covering a total area of more than 500 sq km, making it one of the larger landholders in the Irish zinc belt. The strategic focus is on the PG West, Stonepark, and Ballinalack projects, which are located in close proximity to existing large-scale deposits and thus offer favorable geological and infrastructural conditions. Added to this are all the advantages that Ireland offers as a location: infrastructure, short distances, and efficient laboratory logistics.
Particular attention is being paid to the Ballywire deposit within the PG West project, which was discovered in 2022 and has since been regarded as one of the most significant mineral discoveries in Ireland. The deposit not only exhibits classic zinc and lead grades but also features a complex metal inventory including silver, copper, and technologically relevant trace elements, which significantly expands its economic potential. Since the discovery, numerous drill holes have been completed, demonstrating a continuous extension of the mineralized system and laying the foundation for an increasingly robust geological model. Additional indications of deeper-seated copper and silver zones suggest that the mineralization is structurally controlled and could continue over greater distances.
A recently completed capital raise of approximately CAD 12 million has strengthened the financial base, allowing for a significant expansion of ongoing programs, with additional drilling planned for the coming years, focusing on Ballywire and Stonepark. The Stonepark project, in which the company holds a majority interest, already has a defined zinc-lead resource and is located directly adjacent to one of the largest undeveloped deposits worldwide, suggesting potential for additional synergies.
Against the backdrop of growing European efforts to secure strategic raw materials and increasing indications of a large-scale multi-metal system, Group Eleven thus has the potential to establish itself as a major supplier of critical metals within Europe in the medium term. The current market value of CAD 285 million could rise rapidly, especially if the market properly values the major silver discovery!
CEO Bart Jaworski discusses the latest major silver discovery on Stockhouse.
Rheinmetall – Is a 30% Consolidation Enough?
A major buyer of industrial metals of all kinds is the defense contractor Rheinmetall. The company’s shareholders can look back on a 2,200% return over the past 4 years. However, the stock price has consolidated by over 30% in the last 3 months, which is no longer making all investors happy. As is typical for all defense stocks, the market has driven the German industry leader sharply higher in recent years until its valuation had completely outpaced operational realities. Most recently at EUR 2,005, the company was valued at a 2026 P/E ratio of 52. At the current price of EUR 1,550, the ratio drops to at least around 40, while CEO Papperger is raising the outlook through 2030 to revenue of just under EUR 42 billion—a fivefold increase from 2025 levels. The much-watched price-to-sales (P/S) ratio, currently over 5, would then even drop to 1.8. But why investors are already anticipating the entire development of the next 5 years seems quite bold to us, as NATO countries in particular are currently facing major budget problems. And should the Iran conflict last longer than expected, the EU even faces the threat of a massive energy crisis, complete with a subsequent recession and falling tax revenues! It is therefore highly doubtful that Rheinmetall should be celebrating a boom here. Therefore: Sell while strong!
RENK – Larger NATO Contracts
The “Rheinmetall” overvaluation problem applies 1:1 to Augsburg-based RENK as well. The stock surged to a price of EUR 90 in October, only to then drop by half by the end of March. At RENK, estimated 2026 revenues are valued at a P/S ratio of 3.5, while earnings are valued at a P/E ratio of 32. Currently, the market assumes annual growth of around 20%, which would make a significantly lower P/E ratio between 20 and 25 appropriate. Investors were recently spurred by new orders totaling EUR 157 million from the NATO sphere. The order list includes tank transmissions, as well as training and spare parts. Delivery is scheduled to begin in Q3 2026 and is expected to extend through 2033, for a total duration of 7 years. This increases the corresponding annual revenue by approximately EUR 22.5 million, or 1.5% of planned revenue in the first fiscal year. According to the company, the underlying tank program opens access to additional international markets within the NATO sphere. So far, so good—but with a 3% weekly gain, the stock market reacted only weakly to the relatively good news. The reason: RENK would need 10 such orders to justify its current valuation. 14 out of 16 analysts on the LSEG Refinitiv platform are nevertheless positive and calculate a 12-month price target of over EUR 69. Only the German research firm mwb rates the stock “Hold” with a price target of EUR 53. That sounds much more reasonable!
In a 6-month comparison, Group Eleven Resources has achieved nearly 200% growth, while defense stocks Rheinmetall and RENK are slowly being brought back to economic reality. They have lost between 21% and 39%, and in terms of valuation, they have not hit rock bottom yet. Source: LSEG Refinitiv as of April 6, 2026
The stock markets are waiting for concrete results from the Middle East. Since these simply are not materializing, the volatile ride will likely continue for a few more weeks. Investors should keep in mind that the duration of the conflict will determine the economic parameters for 2026 and beyond. A well-defined diversification strategy, including hedges, has become essential for a portfolio. Commodity stocks represent a smart hedge against inflationary trends.
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Solid State (LSE:SOLI) reported a robust end to its 2025/26 financial year, with revenue now expected to reach at least £150 million and adjusted profit before tax set to exceed market forecasts. Growth was driven by contributions across all three of the company’s operating divisions. The Components division benefited from new design wins, the Power division saw improved performance following internal reorganisation alongside rising demand linked to drones and autonomous technologies, and the Systems division recorded strong communications-related orders as well as growing opportunities in antennas and integrated systems.
The company’s open order book increased to around £106.5 million, supported in part by approximately $20 million in new orders within the Power division. Most of the current backlog is expected to be delivered within the next 18 months, although management noted that component lead times are extending due to rising demand linked to artificial intelligence technologies and ongoing geopolitical tensions affecting supply chains.
Management also highlighted that increasing global defence and security spending is driving demand for the company’s UK- and US-based sovereign technology capabilities. Continued investment in production capacity and technical capabilities is expected to support stable growth over the medium term, even as macroeconomic pressures and supply chain challenges persist.
From an investment perspective, Solid State maintains a stable financial base, though profitability and cash flow trends present some challenges. Technical indicators currently suggest short-term bullish momentum in the share price. However, valuation metrics indicate the possibility of overvaluation, particularly given the company’s relatively high price-to-earnings ratio and some recent pressure on profitability. On the positive side, recent contract wins and strategic partnerships strengthen the group’s growth outlook.
More about Solid State
Solid State plc is a UK-based value-added electronics group that supplies industrial and defence markets with specialised components, assemblies and systems designed for critical applications in demanding environments. The company operates through three divisions—Systems, Power and Components—and focuses on areas such as industrial computing, battery technologies, antennas, secure communications, imaging and electronic components. Its products serve a range of industries including defence, aerospace, energy, robotics, medical technology and transportation.
Thruvision Group (LSE:THRU) reported a 45% increase in revenue for the year ended 31 March 2026, reaching approximately £6.0 million and meeting board expectations. The growth was driven largely by two major orders from Asia valued at £2.7 million. Total order intake during the year reached £7.1 million, leaving the company with a backlog of around £1.3 million scheduled primarily for delivery in the first half of FY27.
The company also strengthened its cash position, ending the year with £2.0 million following a fundraising completed in 2025. While performance in Asian markets has been strong, Thruvision has experienced weaker retail distribution activity across the UK, Europe and the United States. In response, the group is increasing investment in direct sales and marketing initiatives. Management is also focusing on rebuilding regional sales capabilities as its new 81 Series screening system begins to gain traction in the market, with the aim of supporting further revenue growth.
Despite the recent improvement in revenue, the company’s outlook remains constrained by weak financial fundamentals, including a history of declining revenues and ongoing losses. Technical indicators offer a broadly neutral picture, while valuation metrics remain under pressure due to negative earnings. The absence of recent earnings call commentary or major corporate events also limits additional insight into the company’s forward outlook.
More about Thruvision Group plc
Thruvision Group plc is an international developer, manufacturer and supplier of advanced walk-through security technology used by government agencies and commercial organisations in more than 30 countries. Its patented, AI-driven screening systems are designed to detect concealed metallic and non-metallic objects in real time. The company operates offices and manufacturing facilities in the UK and the United States, supporting deployments in high-throughput security environments such as transport hubs, stadiums and secure facilities.
Kooth (LSE:KOO) reported audited results for 2025 that highlight its shift toward long-term, scalable growth, supported by the rapid rollout of its Soluna digital mental health platform in the United States. By the end of the year, more than 144,000 young people had signed up to the service in California, supported by over 1,400 partnerships with community organisations and institutions. The programme has also received backing from state agencies, while independent studies have shown improvements in users’ psychological wellbeing and a reduction in urgent-care usage.
The company continued expanding its US presence, extending operations to three states after renewing a contract in New Jersey and securing a new $2.6 million agreement in Michigan. At the same time, Kooth maintained a strong position in the UK digital mental health market and broadened its funding base with initiatives such as services delivered for the Department for Work and Pensions. Revenue declined slightly to £63.3 million from the record levels seen in 2024, mainly due to foreign exchange movements, reduced California development fees and delayed revenue recognition in Michigan. Despite this, the company delivered adjusted EBITDA of £11.3 million—exceeding expectations—and finished the year with £21.6 million in net cash. The group also continued to invest in expansion initiatives, including plans to launch Soluna in the UK, develop ethical AI capabilities and pursue selective acquisitions.
Kooth’s investment outlook is largely supported by strong financial performance during 2024, including growth, profitability and robust free cash flow alongside very low leverage. However, technical indicators introduce some caution, with the stock showing overbought signals and still trading below its 200-day moving average. Valuation appears moderately supportive, with a mid-range price-to-earnings multiple, though there is currently no dividend data.
More about Kooth
Kooth plc is a global provider of digital mental and behavioural health services, offering platforms such as Kooth, Qwell and Soluna to more than 20 million people across the UK and the United States. Its services combine self-guided wellbeing tools, moderated peer communities and access to professional therapeutic support. The company’s platforms hold independent accreditations from URAC in the United States and the British Association for Counselling and Psychotherapy in the UK, with a strong focus on youth mental health and evidence-based outcomes.
Kooth is a leading digital access point for mental health support for under-18s in England and operates Soluna as California’s first statewide digital behavioural health solution for individuals aged 13 to 25. The company aims to expand its reach through partnerships with public sector clients and state-level programmes, supported by acquisitions, strategic collaborations and responsible AI-driven product development.
United Oil & Gas (LSE:UOG) has reported encouraging findings from a seabed geochemical exploration survey conducted across its Walton-Morant offshore licence in Jamaica. Analysis of 42 piston core samples detected C4 and C5 hydrocarbons—including butanes and pentanes—which are typically associated with thermogenic hydrocarbon systems rather than purely biogenic sources.
The results strengthen the case for an active petroleum system within the licence area. They complement earlier indicators such as satellite-detected slick anomalies, known oil seeps and modelling that suggests the presence of oil-mature source rocks. Data gathered from the survey—including information derived from 3D seismic studies, multibeam seabed mapping and satellite observations—will now be incorporated into updated geological models. The aim is to refine exploration risk assessments and support ongoing technical analysis as the company continues farm-out discussions ahead of a potential drilling decision.
Despite the positive exploration indicators, the company’s investment outlook remains constrained by weak financial fundamentals, including the absence of revenue, continued operating losses and volatile cash generation. Low leverage offers some balance-sheet support. From a technical perspective, the shares show a positive trend with solid upward momentum, although valuation metrics remain challenging due to negative earnings and a price-to-earnings ratio that provides little meaningful support.
More about United Oil & Gas Plc
United Oil & Gas Plc is an AIM-listed oil and gas exploration and development company with assets in the UK and Jamaica. Its portfolio includes a development project in the United Kingdom and a high-impact offshore exploration licence in Jamaica. The company is led by an experienced management team and works alongside industry partners while pursuing growth through portfolio optimisation and selective acquisitions.
