European Stocks Rise on Geopolitical Calm: SToxx 600, DAX and FTSE 100 Post Strong Gains

European equity markets rallied as Middle East tensions eased and the United States declined to approve a new strike plan against Iran.

SToxx 600 and Regional Indexes: Current Performance

■SToxx Europe 600 index rose %0.7 to 649 points.

■FTSE 100 (United Kingdom) gained %0.5, closing at 10,783 points.

■DAX 40 (Germany) jumped %1.2 to 25,404 points.

■FTSE MIB 30 (Italy) increased %0.5 to 52,062 points.

■CAC 40 (France) rose %0.8 to 8,435 points.

■IBEX 35 (Spain) climbed %0.9 to 19,765 points.

Germany’s Political Turmoil and Market Reactions

Germany's Transport Minister Patrick Schnieder resigned amid a power struggle with Chancellor Friedrich Merz, deepening the internal party crisis. Market participants are closely watching potential impacts on rail infrastructure and logistics sectors.

Key Economic Indicators to Watch

■German Ifo Business Climate Index: Expected later this week.

■U.S. Durable Goods Orders: A crucial gauge of consumer demand.

■Dallas Fed Manufacturing Index: Will gauge U.S. production activity.

■Middle East Energy Prices: Ongoing geopolitical developments continue to influence energy markets.

Expert Commentary (Dr. Aslıhan Demir): The rally across European equities reflects more than a temporary easing of geopolitical risk; it signals a renewed risk appetite. Germany's political uncertainty may inject short‑term volatility, yet the robust DAX performance underscores the underlying resilience of the German economy. Upcoming Ifo and U.S. durable‑goods data will be pivotal in shaping market direction, while stable energy prices could ease inflation pressures in Europe, potentially softening central‑bank policy stances.