Europe opens to a tale of two forces: a genuine risk-on reset fuelled by the US–Iran peace deal and a collapsing oil complex on one hand, an
Europe’s markets traded cautiously ahead of Federal Reserve Chair Kevin Warsh’s first FOMC decision, balancing optimism from the US–Iran peace agreement against growing pressure in the automotive sector. The DAX slipped toward 24,915 after BMW issued a profit warning that triggered a sharp selloff across major European carmakers. Meanwhile, EUR/USD remained firm near 1.1611 following the ECB’s recent rate hike to 2.25%, while GBP/USD held gains ahead of the Bank of England’s policy meeting. Falling oil prices continued to support the broader “peace dividend” narrative, weighing on BP shares and natural gas while easing inflation concerns across the region. Silver consolidated below recent highs, and crypto markets remained cautious with BNB drifting lower before the Fed announcement. Investors now await Warsh’s policy guidance and updated rate outlook, which could determine the next major move for European equities, currencies, commodities, and digital assets.
