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2026.03.2516:58:12UTC+00European Stocks Close Higher

European equities closed sharply higher on Wednesday, extending this week’s rebound as signs that the US is seeking to de-escalate tensions with Iran eased fears of energy-driven inflation. The Eurozone’s STOXX 50 rose 0.6% to 5,627, while the pan-European STOXX 600 advanced 1.2% to 586.

Washington outlined parameters for a ceasefire with Iran—an offer rejected by Tehran—but the move nevertheless signaled an intent to cool the conflict and prioritize economic stability via lower energy prices. That shift in tone supported risk assets globally.

Banks led the upswing. Stronger demand for European government bonds alleviated worries about bank balance sheets, lifting shares in ING, Deutsche Bank, Santander, and BBVA by more than 2%. Industrial and chemical stocks also advanced, helped by a fourth consecutive daily decline in natural gas prices that improved margin expectations. Schneider Electric, BASF, and Siemens Energy gained between 2.5% and 4.5%.

In corporate news, Grifols added 1.5% after announcing plans to list its US biopharma business through an IPO.

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