We don’t support this browser anymore.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Europe midday: Shares extend gains on US-Iran peace deal optimism

Tue 16 June 2026 11:11 | A A A

No recommendation

No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

Market latest

FTSE 100 | FTSE 250 | Paris CAC 40 | Dow Jones | NASDAQ

10501.53 | Positive 70.91 (0.68%)
Graph

Prices delayed by at least 15 minutes

(Sharecast News) - European shares extended gains after record closes on Wall Street and Tokyo amid cautious optimism over the US-Iran peace deal.

The pan-regional Stoxx 600 index was up 0.41% to 637 at 1148 BST with all major bourses higher.

The Dow Jones Industrial Average hit a record closing high, while the S&P jumped 1.65% and Nasdaq surged 3%.

Japan's Nikkei passed through 70,000 for the first time and closed at a record 69,404 points after US President Donald Trump said the vital Strait of Hormuz could open as early as Friday, although this was not confirmed by Tehran.

Sentiment was also boosted when the Bank of Japan lifted interest rates to a three-decade high, although not by as much as investors feared,

The BoJ raised its key interest rate to 1% from 0.75% as expected with some analysts suggesting a 50-basis-point hike had been on the cards as the oil dependent country battles rising energy costs.

Oil prices slid further with Brent Crude just above $80 and West Texas Intermediate at $78.39. However, traders are still wary that the deal could unravel given Israel's refusal to leave Lebanon, a decision that is straining tensions in Iran.

"The oil price is continuing to fall, even though some oil tanker bosses are expressing caution about the reopening the Strait of Hormuz," said XTB research director Kathleen Brooks.

"Bosses of the world's biggest shipping companies want to see more than just an agreement in place, mines need to be swept, and all hostilities must end, before tankers with hundreds of millions of dollars' worth of cargo will be able to traverse the Strait without fear of a flare up in tensions that could close (it) mid-voyage."

"Brent crude remains above $80 per barrel, and it is unlikely to fall below this level until we start to see cargo ships successfully get through the Strait."

Australia's central bank held its key rate but warned that rises were still on the table if inflationary pressures persisted.

In equity news, arms makers were in focus with Rheinmetall, Kongsberg and Saab all making gains.

Shares in Redcare Pharmacy surged after the company on Monday lifted its 2026 outlook.

UniCredit gained as the German government rejected its multibillion-dollar bid for Commerzbank.

Reporting by Frank Prenesti for Sharecast.com

    Daily market update emails

    • FTSE 100 riser and faller updates
    • Breaking market news, plus the latest share research, tips and broker comments

    Register now for free market updates

    The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.