The European Central Bank raised interest rates by 25 basis points — its first increase since 2023 — with Governor Joachim Nagel saying the bank stands ready to hike again in July if inflation pressures persist. The Bundesbank said Germany should still expand about 0.5% in 2026 as higher public spending cushions the impact of the Middle East conflict.
Markets rallied on waning geopolitical risk and blockbuster deal flow. President Trump called off planned strikes on Iran and said a deal was close, helping send US equities sharply higher, the dollar weaker and oil tumbling more than 5%.
Deal and listing activity kept pace. SpaceX completed the largest IPO in history, raising roughly $75 billion, with premarket indications showing the stock could jump as much as 35% at the open. BYD said it will invest €2 billion to roll out five‑minute flash chargers across Europe. Chinese tech IPO activity also picked up: Dreame Technology, a maker of robotic home appliances, is weighing a Hong Kong listing, and Engine AI has confidentially filed for a Hong Kong IPO, Bloomberg reported.
On the corporate-finance front, Italian fintech Satispay plans to raise about €120 million to fund expansion into new financial products.
Risk appetite surged on the twin cues of easing Iran tensions and the SpaceX offering. European and Asian equities rose about 2% on average, US futures pointed to modest gains and Brent crude traded near $86 a barrel as traders repriced energy and policy risk.