European stocks moved higher as investors responded to a clearer improvement in the geopolitical backdrop, with easing concern over Middle East disruption helping support risk appetite across the region. Hopes around Iran-US talks, combined with a steadier view on oil supply risks, gave markets room to recover and helped shift attention back towards opportunity rather than defence.
Technology shares led the move higher, while real estate also advanced as German bond yields fell. Lower yields tend to support valuations in growth sectors and improve the backdrop for companies that are more sensitive to financing conditions. The move was not limited to one narrow part of the market either, which gave the rise a broader and more convincing feel. Even with Brent crude holding near $100 a barrel, the market’s response suggested investors were becoming more confident that the worst-case energy scenario may not materialise.
Fidelity European Trust PLC (LON:FEV) aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.
