LIVE MARKETS-Before the bell: Mideast truce lifts European futures 5%

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BEFORE THE BELL: MIDEAST TRUCE LIFTS EUROPEAN FUTURES 5%

European and U.S. futures rallied on Wednesday, joining a relief rally from Asia after a two-week Middle East ceasefire sent energy prices plunging and eased inflation worries, reviving rate-cut bets.

Euro STOXX 50 .STOXX50E and DAX .GDAXI futures jumped more than 5%, on track for their biggest one-day rise since the aftermath of Russia's invasion of Ukraine in 2022, while Nasdaq contracts surged over 3%.

Jefferies strategist Aniket Shah said the U.S.–Iran ceasefire signalled peak uncertainty for markets after weeks of turbulence that sent Europe's STOXX 600 .STOXX down as much as 12% from late February's record levels.

"With post‑ceasefire paths ranging from a narrow diplomatic off‑ramp to a frozen conflict or renewed fighting, markets appear to be pricing beyond worst-case outcomes," he said.

Traders are also bracing for big stock moves in Europe.

Premarket trading signals strong gains in travel, industrials and banks, seen as key beneficiaries of cheaper energy and falling yields.

Travel operator TUI TUI1n.DE is up nearly 10% on Tradegate and airline Lufthansa LHAG.DE over 8%.

Semiconductors and industrials are sharply higher, with Infineon IFXGn.DE and Siemens Energy ENR1n.DE up around 8%, pointing to renewed demand for cyclical and capex-linked names.

Banks are firmly bid, led by BBVA BBVA.MC, Deutsche Bank DBKGn.DE and Nordea, all up around 7–8%.

The rally comes with a sharp sector split, however, as oil majors are hit hard by the crude rout. Norway's Equinor EQNR.OL Eni ENI.MI, BP BP.L and Shell SHEL.L are by 8-13%.

(Danilo Masoni)

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