Just two trading days after U.S.-Iran geopolitical tensions flared up, Europe’s equity market is bouncing back.
Stocks have pretty much already recovered losses fueled by the risk-off sentiment that hit markets last Friday after a U.S. airstrike killed a top Iranian commander. Meanwhile, equity volatility remains low and investors continue to pour money into the region’s funds.
While Iran said on Tuesday it’s assessing 13 scenarios to avenge the attacks and that even the weakest of those options would be a “historic nightmare” for the U.S., markets mostly shrugged. The Stoxx Europe 600 Index gained as much as 0.7%, erasing declines of the previous two days, as tech shares and retailers climbed the most.