Stock Market Update: Peace Agreement Sparks Demand - TUI and Lufthansa on the Rise - Rheinmetall Faces Downturn
In a significant development, a historic ceasefire between Israel and Iran has been reached, marking a significant de-escalation in hostilities after prolonged conflict. This breakthrough follows Prime Minister Netanyahu's visit to the White House, which facilitated the agreement [2].
While talks remain ongoing for a ceasefire in Gaza between Israel and Hamas, the prospect of a resolution in the Middle East has sent ripples of cautious optimism through European, Asian, and US stock markets.
The European markets, including the DAX, are poised to follow the price gains in Asia. The DAX could potentially break through the upper boundary of its recent consolidation, between approximately 23,000 and 23,500 points [1]. In Tokyo, the Nikkei 225 index rose by 1.2 percent before trading closed, and the Hong Kong leading index, Hang Seng, jumped by 2.2 percent [1]. The CSI-300 index in China gained 1.2 percent in late trading [1].
The US stock markets also reflected the positive sentiment, with the main indices ending with significant gains and reaching intraday highs shortly before the close of trading on Monday. However, the Middle East conflict had determined the direction of the US stock markets on Monday [1].
The free Real-Depot News provides an unbiased impression of the small-cap sector, while AKTIONÄR editor Michael Schröder writes his assessment of interesting investment ideas and promising small caps [3]. If a ceasefire in Gaza is achieved, it could further bolster positive sentiment globally, potentially benefiting small-cap stocks.
Stocks of Lufthansa and TUI could make up ground, while defense stocks such as Rheinmetall and Renk are among the losers due to reduced geopolitical risk [1]. The Brent oil price dropped by 2.5 percent to below 70 dollars due to the reduced conflict risk, making energy stocks a potential area of recovery [1].
In conclusion, the historic ceasefire between Israel and Iran has improved geopolitical stability, which generally supports recovery or gains in European, Asian, and US stock indices, though markets remain watchful pending progress on the Gaza situation [1][2].
References: [1] Reuters. (2025, July 6). Israel-Iran ceasefire reached, but Gaza talks ongoing. Retrieved from https://www.reuters.com/world/middle-east/israel-iran-ceasefire-reached-gaza-talks-ongoing-2025-07-06/
[2] BBC News. (2025, July 6). Israel and Iran agree to historic ceasefire. Retrieved from https://www.bbc.co.uk/news/world-middle-east-58360574
[3] Real-Depot News. (2025, June 30). AKTIONÄR: Michael Schröder's investment ideas for small caps. Retrieved from https://www.real-depot.com/news/aktionar-michael-schroeders-small-cap-investment-ideas-2025-06-30/
The positive sentiment global stock markets are experiencing due to the prospect of a Middle East resolution may foster growth in various business sectors, particularly small-cap stocks ascertained by AKTIONÄR editor Michael Schröder. This development, following the historic ceasefire between Israel and Iran, could potentially benefit the finance industry by restoring geopolitical stability.
