European markets' reaction to Trump's Iran ceasefire deadline

What happened: U.S.-Iran tensions escalated and de-escalated over the past week, driving market reactions. On April 8, U.S. President Donald Trump and Iran agreed to a two-week ceasefire, ending six weeks of war. This followed failed peace talks and a U.S. blockade of Iranian ports. European markets reacted with mixed openings on April 7 and 8, while gold prices surged to a three-week high and Wall Street reached near one-month highs.

Market impact: Energy and mining sectors were most affected. Oil prices retreated after the ceasefire, benefiting energy consumers and reducing input costs for energy-intensive industries. Gold, a safe-haven asset, jumped 3% on reduced geopolitical risk. European stocks closed mixed on April 7 but rose on April 8, with the FTSE 100, DAX, and CAC 40 gaining between 0.2% and 0.6%. Canadian stocks also rose sharply. Odds for a Fed rate cut this year increased to 43% following the ceasefire.

What to watch next: On April 12, Iran and the U.S. will resume peace talks in Qatar, which could determine the ceasefire's longevity. On April 14, the European Central Bank's monetary policy meeting minutes will be released, which may provide insights into the bank's response to geopolitical developments. Additionally, investors will closely monitor oil prices, as any significant movement could impact energy and mining sectors.