This is how markets celebrate the Iranian ceasefire

On the market has burst into jubilation over the cease-fire announcement by the United States and Iran. Oil is getting cheaper and stocks are getting more expensive. In this story, market reactions are monitored on Wednesday.

The Helsinki Stock Exchange opened to a fair rise

The Helsinki Stock Exchange opened to a noticeable rise on Wednesday. Immediately after the start of trading, the Helsinki stock exchange was up by more than 2 percent. At 10:45 a.m., the stock exchange’s general index was already up almost 2.5 percent.

For example, steel companies were on a strong rise immediately after the stock market opened.

This is how the shares of the Helsinki Stock Exchange reacted (at 10:45 a.m.):

• SSAB (b share): 8.2%

• Qt Group: 8,1 %

• Outokumpu: 7.8%

• Nokian Tires: 6.8%

• Konecranes: 6,4 %

The Helsinki Stock Exchange can also accommodate shares that fell sharply on Wednesday morning. For example, the fuel refiner Neste’s stock fell sharply as a result of the drop in oil prices. The company’s share was down almost 6 percent at 10:45 a.m.

How stocks react elsewhere

Stock valuations rose on Wednesday around the world. For example, the Dax index of the Frankfurt stock exchange would rise by about 5 percent. The Stoxx Europe 600 index, which tracks broad European stocks, was also up by around 3.5 percent.

This is how the stock exchanges reacted elsewhere in Europe (situation at 10:45 a.m.):

• Stockholm (OMXSPI): 3.8%

• Paris (Cac 40): 4,2 %

• Copenhagen (OMXCPI): 2.1%

• Lontoo (UK FTSE All Share): 2,6 %

On the Tokyo stock exchange, the buy button had previously been at the bottom on Wednesday. The Nikkei index rose 5.4 percent.

The index has fluctuated strongly during the war, but so far this is the strongest positive rise during the war that started at the end of February. In Tokyo, technology stocks and real estate stocks in particular rose sharply.

In other parts of Asia, Wednesday has also been a strong day of growth. For example, South Korea’s Kospi index rose by as much as 6.9 percent and Hong Kong’s Hang Seng index by almost 3 percent.

A rise is expected later also in the United States Futures predicting key stock indices were up 2.5–3.2 percent after 10:30 a.m. Finnish time.

Why are the markets celebrating?

The United States and Iran agreed on a two-week ceasefire on the night between Tuesday and Wednesday Finnish time. President of the United States Donald Trump’s according to which the United States agrees to a ceasefire if Iran commits to opening the Strait of Hormuz.

The situation is grim, because the strait, which is crucial for energy transport, was open before the airstrikes launched by the United States and Iran on the last day of February. Iran has also announced that it agrees to a ceasefire. As recently as Tuesday, Trump threatened to “destroy the entire Iranian civilization” if Iran does not agree to an agreement.

The price of oil fell sharply

The price of Brent reference quality crude oil fell sharply early in the morning after the cease-fire was announced Finnish time. According to the Reuters news agency, the price fell by 15 percent immediately after the announcement.

Brent oil cost less than USD 94 per barrel at 9 a.m. Finnish time on Wednesday morning. Even after midnight before the announcement, oil cost about 104 dollars per barrel. A barrel is a unit used in the oil trade, and trade is done in dollars.

Oil was last cheaper than today on March 11.