European stock markets are on a positive note on the first trading day of the week, thanks to the agreement between the USA and Iran.
Developments regarding the US/Israel-Iran War and technology companies continue to be the focus of global markets.
Pakistani Prime Minister Shahbaz Sharif announced that an agreement was reached between the USA and Iran.
US President Donald Trump also announced that the peace agreement with Iran has been completed, the Strait of Hormuz will be opened and the US naval blockade will be lifted immediately.
Iranian Deputy Foreign Minister Kazim Garibabadi confirmed that an agreement was reached with the USA and stated that the memorandum of understanding would be signed in Switzerland on June 19.
Predictions that the peace agreement reached between the USA and Iran will alleviate global inflation pressures and reduce the need for high interest rates support risk appetite in global markets.
While this development is expected to provide leeway for central banks that will announce interest rate decisions this week, it is expected that concerns about inflationary pressures arising from energy prices will ease, which will slightly reduce the pressure on further tightening of monetary policies.
The agreement is expected to alleviate energy supply problems.
On the other hand, the interest rate decision of the Bank of England (BoE) will be followed in Europe this week. Although the bank is expected to keep the policy rate constant this week, it is estimated that it may increase interest rates for the rest of the year if geopolitical tensions continue.
With these developments, as of 10.40 in the European markets, the Stoxx Europe 600 indicator index is at 640 points with a 1.1 percent increase, and the FTSE 100 index in the UK is at 10,534 points with a 0.6 percent gain.
In Germany, the DAX 40 index is at 25,070 points with an increase of 1.8 percent, in Italy the FTSE MIB 30 index is at 51,985 points with a 1 percent increase, in France the CAC 40 index is at 8,483 points with a 1.6 percent premium, and in Spain the IBEX 35 index is at 19,017 points with a 1.4 percent gain in value.
Analysts stated that the data agenda, especially industrial production in the USA and the Eurozone, will be followed today.
