Stoxx 600 Rallies 12% as European Markets Defy Iran War Stagflation Calls
Updated
Updated · Yahoo Finance · Aug 12
Stoxx 600 Rallies 12% as European Markets Defy Iran War Stagflation Calls
3 articles · Updated · Yahoo Finance · Aug 12
Summary
The Stoxx Europe 600 has climbed 12% in 2026, while Germany, France and Italy have all pushed their main stock benchmarks to record highs.
That advance has come despite forecasts that the Iran war would drag Europe into stagflation, with investors instead bidding up regional assets.
German government bonds are also outperforming US Treasuries, and the euro is trading near a two-month high, signaling broader confidence beyond equities.
The move extends a rally already fueled by strong earnings, economic momentum and sustained fund flows into European markets.