Europe open: Shares gain as Dow, Nikkei hit records on Iran peace deal

16th Jun 2026 08:00

(Sharecast News) - European shares opened higher after record closes on Wall Street and Tokyo amid cautious optimism over the US-Iran peace deal.

The pan-regional Stoxx 600 index was up 0.24% to 635 at 0807 BST with all major bourses higher.

The Dow Jones Industrial Average hit a record closing high, while the S&P jumped 1.65% and Nasdaq surged 3%.

Japan's Nikkei passed through 70,000 for the first time and closed at a record 69,404 points after US President Donald Trump said the vital Strait of Hormuz could open as early as Friday, although this was not confirmed by Tehran.

Sentiment was also boosted when the Bank of Japan lifted interest rates to a three-decade high, although not by as much as investors feared,

The BoJ raised its key interest rate to 1% from 0.75% as expected with some analysts suggesting a 50-basis-point hike had been on the cards as the oil dependent country battles rising energy costs.

Oil prices slid further with Brent Crude just below $83 and West Texas Intermediate at $80.44.

However, traders are still wary that the deal could unravel given Israel's refusal to leave Lebanon, a decision that is straining tensions in Iran.

Australia's central bank held its key rate but warned that rises were still on the table if inflationary pressures persisted.

In equity news, arms makers were in focus with Rheinmetall, Kongsberg and Saab all making gains.

Reporting by Frank Prenesti for Sharecast.com