European equities rose on Wednesday, helped by a rally for energy stocks as oil prices gained.
Crude was advancing in the wake of U.S. President Donald Trump’s much-anticipated decision to withdraw from an Iran nuclear deal and reimpose sanctions on the oil-producing nation — a move that could reduce global crude supplies.
What are markets doing?
The euro EURUSD, -0.0674% bought $1.1843, down slightly from $1.1864 late Tuesday in New York. Retreats by the currency tend to bolster the overseas revenue generated by Europe’s multinational companies.
What is driving the markets?
Trump announced on Tuesday that the U.S. was abandoning a 2015 Iran nuclear deal. He hinted at an openness on the part of the U.S. to negotiations, and analysts said that was helping equity markets avoid a sizable selloff. Even so, the withdrawal puts Washington at odds with European allies.
Encouraging first-quarter earnings reports also were providing a lift on Wednesday.
What are strategists saying?
“The reason why the broader sentiment was not affected could be Trump’s willingness to enter talks if Iran agrees to do so, and/or the prospect of Iran staying in the deal, even without the U.S.,” said Charalambos Pissouros, senior market analyst at JFD Brokers, in a note.