On Wall Street, indices showed a mixed performance at mid-session. Around 5:50 p.m., the Nasdaq was down XXX%.

In Europe, the renewed market optimism is largely attributed to the de-escalation observed between Washington and Tehran. Following the announcement of a framework agreement between the United States and Iran, an initial round of negotiations is scheduled for Friday. According to the Iranian Foreign Minister, this is the date the protocol should be officially ratified and the Strait of Hormuz reopened.

Concurrently, relations between Donald Trump and the Israeli Prime Minister have become strained. The U.S. President has criticized Israel for compromising the fragile compromise reached with Iran. He also indicated that he had "suggested to Israel to let Syria deal with Hezbollah" in Lebanon, despite Damascus's reluctance to become involved in the matter.

This improvement in the geopolitical landscape weighed on oil prices. Brent crude fell back below the $80 per barrel threshold for the first time since March, following Donald Trump's announcement regarding the full reopening of the Strait of Hormuz on Friday.

Investors are now bracing for a major encounter with the U.S. Federal Reserve. The Fed, now chaired by Kevin Warsh, will announce its monetary policy decision on Wednesday at the conclusion of its two-day meeting. While a status quo on benchmark rates is widely anticipated, markets will closely scrutinize the new chairman's comments on inflation, employment, and the economic outlook.

The Fed in Focus

"Unsurprisingly, the Fed will remain on pause. Kevin Warsh should appear comfortable maintaining a wait-and-see approach, reserving potential rate cuts for a more distant horizon," says Francois Rimeu, senior strategist at Credit Mutuel AM.

"The focus is not so much on benchmark rates, where no change is expected, but rather on Kevin Warsh's first press conference and how he will balance the demands of President Trump with those of the bond market," adds Alessia Berardi, head of global macroeconomics at the Amundi Investment Institute.

The latest U.S. economic data continues to fuel questions regarding the trajectory of inflation. Import prices rose by 1.9% in May following a 2% increase in April, whereas the consensus had expected a limited rise of 1.0%.

In the housing sector, 1.413m building permits were issued at an annualized rate in May, compared to 1.423m in April. Housing starts stood at 1.177m, significantly below the consensus forecast of 1.430m.

In the Asia-Pacific region, central banks have adopted diverging paths. The Bank of Japan raised its key interest rate by 0.25 percentage points to 1%, while the Reserve Bank of Australia left its rate unchanged at 4.35%.

In Europe, the ZEW economic sentiment index rebounded sharply in June. In Germany, it reached 10.5 points compared to -10.2 in May, significantly exceeding expectations. In the eurozone, the indicator rose to 9.5 points after -9.1 points the previous month.

Stocks in Motion

In corporate news, JCDecaux surged 4.95%, bolstered by Bank of America Securities upgrading its recommendation to "buy."

Carrefour (+0.79%) announced a new plan aimed at reducing its plastic consumption by 5,000 tonnes.

In Amsterdam, Adyen (+3.66%) posted the largest gain on the AEX index following the launch of a new suite of modular APIs designed to allow companies to market their products across all conversational artificial intelligence platforms.

On the foreign exchange market, the euro was up 0.12% at $1.1604.