European and American stock markets recorded a significant rebound on Wednesday, breaking a streak of painful sell-offs triggered by the conflict in Iran. Investors, counting on a diplomatic resolution to the dispute and a short duration of military actions, returned to buying risky assets. Indices in Milan, Madrid, and Warsaw rose by about 2 percent, while energy commodity prices, after recent sharp spikes, began to show signs of stabilization.
Revival on trading floors
Indices in Europe and the USA recorded gains from 1.9% to 2.5%, reacting to hopes for de-escalation.
Commodity stabilization
Oil and gas prices halted after sharp increases, relieving pressure on energy-intensive sectors.
Crash in Korea
The Korean market experienced its worst day in history, recording a massive capital flight.
Return of tech giants
Companies like Tesla are recovering losses, driving gains on the Nasdaq index.
Wednesday's session on capital markets brought a long-awaited calming of sentiment after a period of panic selling. Major European indices closed the day with significant gains, which is interpreted as the market betting on a scenario of de-escalation of tensions in the Middle East. The German DAX managed to return above the psychological barrier of 23,000 points, and the Spanish IBEX 35 gained nearly 2.5 percent, almost fully recovering the losses incurred after Donald Trump's morning threats. Investors on the Warsaw Stock Exchange also showed optimism, which translated into gains for most key companies. A key factor supporting the rebound was stabilization in the commodity market. Crude oil and natural gas prices stopped rising, which reduced inflationary pressure and concerns about corporate operating costs. On Wall Street, technology companies led the way, including Tesla, which returned above the $400 level. Analysts note that the market is trying to discount a potential diplomatic solution, though they warn that geopolitical risk remains high and any new spark could trigger another correction. Financial markets have historically shown high sensitivity to conflicts in the Persian Gulf due to the strategic importance of the Strait of Hormuz for global hydrocarbon supplies. The energy crises of the 1970s permanently ingrained the mechanism of a sharp stock market reaction to any threats in this region. A completely different situation prevailed, however, in South Korea, which became a victim of the strongest capital strike. Korean stocks recorded their worst day in history, and the local won drastically lost value. Panic on Asian trading floors led to the forced liquidation of many leveraged positions, deepening the selling spiral. The contrast between Asian panic and European-American optimism shows how differently world regions perceive the direct threat resulting from the expanding conflict in Western Asia. „Hoffnung auf diplomatische Lösung im Iran-Krieg sorgt für Erholung” (Hope for a diplomatic solution in the Iran war is driving recovery) — Wall Street Analysts Despite improved spirits in Europe, experts remain cautious. Commodity price stabilization is fragile, and stock market sentiment is still determined by current reports from the front and White House statements. The current market situation resembles periods of high volatility, where technical rebounds often alternate with waves of corrections triggered by external factors.
Perspektywy mediów: Liberal media emphasize hope for diplomacy and energy price stabilization as key to calming financial markets. Conservative media highlight the destabilizing impact of political threats and the tragic consequences of the conflict for emerging markets, like Korea.
Mentioned People
- Donald Trump — President of the USA, whose statements and threats influence stock market volatility.