Markets priced in a possible near-term reopening of the Strait of Hormuz,
sending oil prices lower, stabilizing bond yields and lifting European equities.
Banking shares led gains after UBS rose 2.5% on reports the Swiss bank is
considering a merger with a foreign bank. Earlier, a surge in energy prices had
Stoked inflation concerns and bets on further central bank tightening,
triggering a global bond selloff and weighing on European stocks; with sentiment
improving the Stoxx Europe 600 is roughly 3% below its August record high.
