Both the STOXX 50 and the STOXX 600 registered a modest gain of 0.2% on Wednesday, recovering from the declines seen in the previous session. However, market sentiment remains cautious due to escalating tensions in the Middle East following Iran's missile strikes on Israel.
In this climate, oil and gas stocks emerged as significant gainers, with prices surging amid fears of potential supply disruptions. Notable performers included Shell (up 2.5%), TotalEnergies (up 2%), BP (up 2.7%), Equinor (up 2.6%), Eni (up 2.3%), and Rsol (up 1.5%).
The luxury sector, particularly sensitive to developments in China, also showed resilience, buoyed by optimism surrounding new stimulus measures from Chinese authorities. Key players such as LVMH (up 0.8%), L'Oréal (up 0.6%), and Hermès (up 1.7%) rorted gains.
Conversely, the travel and leisure sector faced downward pressure. In particular, JD Sports experienced a loss exceeding 3.5% despite rorting better-than-expected profits and reaffirming guidance. In contrast, Adidas saw a 1.5% gain following the withdrawal of Nike's full-year guidance.
Since the start of 2024, the leading stock market index in the Euro Area (EU50) has risen by 438 points, or 9.70%. Current projections suggest that the Euro Area Stock Market Index is set to reach approximately 4898.94 points by the end of this quarter, as per global macro models and analyst forecasts. Looking ahead, analysts estimate a projected index value of 4586.96 within the next 12 months.