European stock markets close higher with expectations of an agreement between the US and Iran

European stock markets closed mostly higher this Friday (22) amid expectations of an agreement to end hostilities in the Middle East after authorities from Pakistan and Qatar traveled to Tehran, aiming to guarantee a peace pact between the United States and Iran.

On the radar, investors are monitoring the possible consequences of the conflict on European economies.

In London, the FTSE 100 closed up 0.22%, at 10,466.26 points. In Frankfurt, the DAX rose 1.31%, to 24,928.39 points. In Paris, the CAC 40 gained 0.37%, at 8,115.75 points. In Milan, the FTSE MIB advanced 0.7%, to 49,510.97 points. In Madrid, the Ibex 35 rose 0.06%, to 17,985.30 points. In Lisbon, the PSI 20 closed down 0.66%, at 9,166.74 points. Quotes are preliminary.

International media reports revealed that Pakistan Army Commander Asim Munir has traveled to Tehran, Iran, as expectations for a Middle East peace deal drive market sentiment.

In addition to the Pakistani, a Qatari negotiating team arrived in the Iranian capital, in coordination with Washington, to help guarantee the pact. Uncertainties, however, remain after the Wall Street Journal said draft versions of an agreement between the parties currently circulating are "inaccurate."

For the president of the ECB (European Central Bank), Christine Lagarde, the lagged effects of the war are likely to continue over time, even if an agreement is reached soon.

Earnings season is marked by war and interest | MARKET OPENING

Lagarde highlighted, however, that the Eurozone Central Bank will take the necessary measures to ensure price stability at 2%. In the same sense, the EU (European Union) Commissioner for Economy and Productivity, Valdis Dombrovskis, highlighted that the ECB must respond to the increase in inflation in Europe.

Among the highlights in the stock market, Spanish company Puig fell 13.2% in Madrid, after ending negotiations with American Estée Lauder on a potential business combination in the beauty sector.

The technology sector rose 3.2%, driven by global optimism with shares linked to semiconductors and AI (artificial intelligence).

Source: CNN