Europe midday: Stocks rebound strongly as oil prices pull back

10th Mar 2026 09:40

(Sharecast News) - Stock markets across Europe rebounded strongly on Tuesday after a heavy sell-off the previous session as oil prices eased on hopes that conflict in the Middle East would be shortlived.

The Stoxx Europe 600 index was up 1.9% at 606.03 by 1153 GMT, after having closed Monday's session at 594.92 - its lowest finish since 2 January.

Benchmark indices in London and Paris were 1.6% and 1.7% higher, respectively, while equities in Frankfurt, Milan and Madrid all jumped over 2%.

"The bulls are back in charge as dip buyers have stepped in on the expectation that we could soon see the end to the conflict in Iran, thus normalising energy prices and presenting a buying opportunity after recent declines," said Joshua Mahony, chief market analyst at Scope Markets.

"Given the fact that Trump came into this conflict calling for regime change, the narrative appears to be shifting in a direction that will likely instead focus on setting back the Iranian regime without lifting inflation to a degree that would hurt Trump's Midterm hopes."

Brent crude was nearly 8% lower at $91.19 a barrel, while WTI crude fell 7.1% to $88.02, after Donald Trump looked to rule out a prolonged conflict with Iran, claiming that the war would end "very soon".

However, Trump's remarks were far from clear cut. In a series of comments made at his Doral resort near Miami, he stated that US forces would not relent "until the enemy is totally and decisively defeated" and that "we've already won in many ways, but we haven't won enough". He did not explain what he meant, nor define what winning entailed.

Oil and gas prices have soared over the past week in response to the US attacking Iran and the outbreak of hostilities across the Middle East. Fears of a global recession spiked after benchmark Brent breached $100 barrel over the weekend and continued to race towards $120, its highest level since Russia invaded Ukraine in 2022.

G7 finance ministers held an emergency meeting in response, and said they stood ready to release emergency stocks of oil and petrol if needed, limiting upside in the oil price.

In economic news, Germany's trade surplus increased to a 17-month high of €21.2bn in January, up from €17.4bn in December, according to the Federal Statistical Office, as a sharp fall in imports offset a smaller decline in exports.

Market movers

Shares in oil producers tracked crude prices lower, with Equinor, BP, Shell, Galp, BP and TotalEnergies all down.

In contrast, manufacturing and industrial stocks gained "as fears around soaring input pricing ease", according to Scope Markets' Mahony. Voestalpine, Kion Group and ArcelorMittal were among the best performers on the Stoxx 600.

Hugo Boss gained in Frankfurt on stronger-than-expected earnings for 2025, supported by a robust fourth quarter, as the German fashion group prepared for a strategic reset in 2026 aimed at improving profitability and long-term growth.

In London, Persimmon surged after the housebuilder said underlying operating profit for 2026 was set to be towards the upper end of consensus as it posted a rise in full-year profit and completions, with growth across all three brands.

The stock had fallen sharply on Monday - along with other UK property-related stocks - on expectations that higher inflation could prompt the Bank of England to raise interest rates this year.