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Europe’s Stocks Are Back in the Lead as Stagflation Risks Ease

Europe’s Stocks Are Back in the Lead as Stagflation Risks Ease
Bloomberg Markets Saturday 20 June 2026, 07:00 UTC By Sagarika Jaisinghani, Julien Ponthus, Michael Msika 1 min read
Key Points

Europe’s Stocks Are Back in the Lead as Stagflation Risks Ease The prospect of peace in the Middle East is setting up European stocks for a standout second half, as investors bet on stronger economic growth and easing inflation. After trailing US peers since the war began three months ago, the Stoxx Europe 600 Index is up about 1.5% this month as the US and Iran reached an interim deal to reopen the Strait of Hormuz — a key waterway in energy transportation. The S&P 500, on the other hand,...

Europe’s Stocks Are Back in the Lead as Stagflation Risks Ease The prospect of peace in the Middle East is setting up European stocks for a standout second half, as investors bet on stronger economic growth and easing inflation. After trailing US peers since the war began three months ago, the Stoxx Europe 600 Index is up about 1.5% this month as the US and Iran reached an interim deal to reopen the Strait of Hormuz — a key waterway in energy transportation. The S&P 500, on the other hand, has dropped 1%.
Europe (LOCATION) the Middle East (LOCATION) European (ORG) US (LOCATION) the Stoxx Europe (LOCATION) Iran (LOCATION) the Strait of Hormuz (LOCATION)
Originally published by Bloomberg Markets Read original →

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