# Calm returns to markets in Europe but oil prices climb higher on Iran war

By Russ Mould — 2026-03-04

Russ Mould, investment director at AJ Bell, said: “If yesterday was capitulation, today is investors catching their breath.

“Most of the main European stock markets regained their balance and either edged higher or held firm, much to the relief of investors who have witnessed two days of share prices flashing red.

“Tuesday was dominated by investors selling assets that had already served them well, such as defence stocks and gold, as they locked in profits.

“More stability on the markets is welcome not only for sentiment but also as it might give certain investors the confidence to go hunting for bargains and drive a new wave of buying.

“What could hold people back from bargain hunting is ongoing uncertainty over energy prices and whether they will stay elevated.

“If they do, it implies a change in thinking for interest rate expectations and that has major implications for asset valuations.

“The FTSE 100 was supported by a broad selection of industries including defence, healthcare, technology, grocers, miners and tobacco.

“That implies some people have sought comfort in defensive-style industries and others have tentatively regained their risk appetite.”

Canonical: https://experts.pressassociation.com/expert/6/views/edeb098192970be9