- 08:10
European markets opened slightly higher on Wednesday, hovering between caution and relief following the announcement of a fragile truce between Israel and Iran. In early trading, Paris was up 0.17%, Frankfurt 0.20%, London 0.16%, and Milan 0.34%.
The previous day, attention had shifted to the aviation sector, buoyed by hopes of easing geopolitical tensions. A “wave of relief” briefly lifted shares of European and US airlines, driven by expectations of a gradual resumption of suspended flights, according to Susannah Streeter, head of markets at Hargreaves Lansdown, as quoted by Reuters.
Shares in Air France-KLM, International Airlines Group, the parent company of British Airways, and Lufthansa surged between 6% and 10%, while Wizz Air climbed 3.2%. On the US side, United Airlines rose 2.7%, while Delta Air Lines and American Airlines were up around 2% each in pre-market trading ahead of the Wall Street open.
This rebound followed a wave of flight cancellations after Iran’s attack on the US military base at Al-Udeid in Qatar. Several strategic hubs, including Dubai and Doha, were temporarily brought to a standstill due to airspace closures across multiple countries in the region. Qatar and the United Arab Emirates have since reopened their skies.
According to Ross Mould, investment director at AJ Bell, the sector’s rise also reflects expectations of a possible decline in fuel prices and relief over a reduced risk of travelers avoiding foreign destinations.
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