European stocks rally after U.S.-Iran cease-fire reopens Strait of Hormuz
Big news for Europe's stock markets: they just had their strongest rally in a year.
The boost came right after the US and Iran agreed to a cease-fire, which reopened the crucial Strait of Hormuz.
Stocks like Antofagasta, ArcelorMittal, and EasyJet shot up over 13% as energy prices cooled down.
Investors cover shorts amid inflation worries
Investors scrambled to adjust their bets and rushed to cover short positions after the cease-fire. Barclays called it a "powerful short squeeze."
But even with markets celebrating, experts warn this is just a temporary relief; deeper issues like inflation and ongoing US sanctions on Iran are still hanging over the global economy.
As Christopher Dembik, senior investment adviser at Pictet, put it, inflation in essentials like food and materials remains a big worry.