Stocks Rally Amidst Geopolitical Tensions, Energy Sector Gains
European markets are showing signs of life, even as investors grapple with global uncertainties stemming from the Middle East. While the Federal Reserve’s next move is eagerly awaited, escalating conflicts continue to influence oil prices and market sentiment.
European Markets Gain Ground
By 2 p.m. in London, the upward momentum in stocks persisted across Europe. The pan-European Stoxx 600 was up approximately 0.3%, potentially halting a five-day losing streak. The French CAC 40 rose 0.8% during afternoon trading, with the German DAX gaining 0.4% and London’s FTSE 100 also increasing by 0.4%. Italy’s FTSE MIB saw the most significant gains, climbing 1.2%.
Entain Shares Soar on Sports Betting Boom
Shares of the London-listed company Entain have surged by 11%, reaching their highest point in over a year. This comes after the gambling group increased its full-year guidance for its North American sports betting and online gaming arm, BetMGM. BetMGM revealed a 34% year-over-year increase in net revenue for the first quarter and has experienced stronger-than-anticipated trade in the second quarter.
ECB’s Cautious Stance
Joachim Nagel, the Bundesbank President, stated that the European Central Bank should neither commit to pausing its rate-cutting cycle nor to further interest rate reductions. He advised the ECB Governing Council to remain vigilant about risks to price stability, and that careful monetary policy is recommended given the current environment. The ECB made a key rate cut earlier in the month, to 2%.
Oil Prices React to Israel-Iran Conflict
Crude oil prices have been volatile as traders monitor the Israel-Iran airstrikes. West Texas Intermediate futures were up 0.7% at 7:43 a.m. London time, at $73.50 per barrel, while global benchmark Brent increased by 0.46% to $74.57 per barrel. Oil prices jumped over 7% on Friday, which was the biggest single-day movement since March 2022.
Economic Data and Events to Watch
This week is packed with crucial events for investors. The U.S. Federal Reserve will make its next interest rate decision on Wednesday. Market analysts are widely anticipating the central bank to hold rates steady, despite pressures from Donald Trump for a rate cut. The Paris Air Show is starting Monday, where conversations may be dominated by the Air India disaster and tensions in the Middle East. The Group of Seven industrialized nations are convening in Canada.
The ZEW survey of economic sentiment in Germany and Europe will be published on Tuesday, with U.K. inflation data due Wednesday. The Bank of England’s monetary policy decision is set for Thursday, though a rate cut is not expected.
According to the U.S. Energy Information Administration, the price of crude oil has risen by over 15% in the past month, reflecting the market’s sensitivity to geopolitical events (EIA, June 2025).
