(New: Updated with further details and stock prices.)

FRANKFURT/PARIS/LONDON (dpa-AFX) - The primary laggards of the Middle East conflict emerged as Wednesday's biggest winners following the agreed ceasefire. Travel and leisure stocks led the sectoral leaderboard with a 7.3 percent gain, having shed 10 percent since the outbreak of hostilities in late February. On the German market, Lufthansa climbed nearly 11 percent, while Tui advanced by almost 12 percent.

Industrial goods manufacturers, such as Siemens, and the construction sector also saw above-average demand. Both sectors had posted double-digit percentage losses since the start of the war, underperforming the Stoxx 600 Index, the benchmark for the broader European market. Siemens Energy surged by over 10 percent, while Siemens rose by 9.4 percent.

In the construction sector, Heidelberg Materials recovered by 9.5 percent, with Bilfinger and Hochtief also posting significant gains. Concerns over global growth resulting from the conflict had weighed heavily on the industrial and construction sectors, both of which are considered highly sensitive to the economic cycle.

This cyclical sensitivity also applies to the technology sector, which was among the top performers on Wednesday with a 6.6 percent increase. The sector had previously been hampered by global supply chain disruptions, particularly affecting semiconductor manufacturers. Relief over the negotiated ceasefire propelled Infineon shares to a gain of nearly 11 percent.

Banks were also high in investor favor, with the European sector average rising by over 6 percent. Commerzbank shares appreciated by 10 percent, while Deutsche Bank rose by 7 percent. A war-induced economic slowdown would typically dampen credit demand from corporate and private consumers. Furthermore, inflation-driven capital market rates had seen the 10-year Bund yield spike from 2.65 to 3.08 percent following the start of the war, raising the specter of bond portfolio losses and credit defaults.

The sole major detractor alongside utilities was the oil and gas sector, which retreated by 3.5 percent. However, the sector remains up over 14 percent since the start of the conflict, having hit successive record highs. Energy producers had been the primary beneficiaries of the Middle East tensions, with oil prices exceeding 100 US dollars. At its peak, a barrel of North Sea Brent even approached 120 dollars./bek/ag/men