European equity markets posted modest gains on Thursday, fueled by signs of a stabilising cease-fire between Israel and Iran and tempered by renewed scrutiny over the independence of the Federal Reserve (Fed) after critical remarks by Donald Trump.
Key highlights:
- The pan-European STOXX 600 index rose by 0.3% to 538.75 points as of 07:07 GMT.
- Cease-fire hopes eased some geopolitically driven risk, supporting sectors like industrials and utilities. Industrial-miner stocks gained 1.1% and utilities rose 0.8%.
- Markets remain cautious, however, as President Trump’s public criticism of Fed Chair Jerome Powell — describing him as “terrible” and hinting at a possible early replacement — raised concerns about the central bank’s operational autonomy.
- With trade negotiations and tariff deadlines looming, investors are balancing relief with caution — optimism around peace is countered by unresolved structural risks.
Markets are now closely watching for signals from central banks and global trade developments to determine whether the cautiously optimistic tone can be sustained.
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