European currencies and stocks recovered today following U.S. President Donald Trump’s announcement last night on social media regarding a preliminary two-week ceasefire, with negotiations continuing to reach an agreement and settlement to end the conflict in the coming weeks.
The euro rose against the U.S. dollar in morning trading, following a prolonged period of uncertainty and euro decline. Today marks the third consecutive day of euro gains, but today’s rise was notably clear and significant, indicating the impact of war developments on the currency market. The euro is now trading at $1.168, having reached its highest level since early March this morning. The British pound also rose, reaching $1.343, its highest level since the last week of March.
Trump’s announcement significantly calmed investor tensions and market conditions. The Iranian administration also indicated its readiness to cooperate in reopening the Strait of Hormuz if there are clear guarantees to halt military strikes, suggesting a near resolution to the crisis that has affected the Strait of Hormuz since late February, which will positively impact international trade.
With this announcement, Trump postpones the military conflict and threats regarding the destruction of Iranian infrastructure in the water, electricity, and energy sectors, returning the dispute to the negotiating table and diplomatic channels. Iranian Foreign Minister Seyed Araghchi stated that with the cessation of fire and military aggression, Iranian forces will in turn stop retaliating against attacks, and passage through the Strait of Hormuz will be safe.
Stock Markets Recover
Stock indices showed improved performance today. In the European session, the pan-European Euro Stoxx index rose 4.16%, the German DAX index increased 4.72%, and the British FTSE 100 index also climbed 2.72%.
The Asian session also closed higher, with the Japanese Nikkei 225 index rising 5.42%, the Australian ASX 200 index climbing 2.55%, the Hong Kong Hang Seng index increasing 3.09%, and the Chinese Shanghai index recovering 2.69%.
Upcoming Events
This week, markets are monitoring U.S. inflation indicators, which are important economic data for the Federal Reserve to make appropriate decisions regarding monetary policy. On Thursday, the Bureau of Economic Analysis will release the Core Personal Consumption Expenditures Price Index for February on a monthly basis, along with the Gross Domestic Product for the last quarter of 2025.
On Friday, the Bureau of Labor Statistics will release the U.S. Core Consumer Price Index and the Consumer Price Index for March on both monthly and annual bases.
