La salle de contrôle d’Euronext, société qui gère la Bourse de Paris ( AFP / ERIC PIERMONT )
Global stock markets continued their upward trend on Tuesday, March 16, 2026, demonstrating resilience despite ongoing geopolitical uncertainties and rising oil prices. Investors are closely monitoring upcoming meetings of major central banks.
The Paris Bourse rose by 0.49%, while Frankfurt and London saw gains of 0.71% and 0.83%, respectively.
In the U.S., the Dow Jones Industrial Average increased by 0.83%, the Nasdaq Composite advanced 1.22%, and the broader S&P 500 climbed 1.01%. These gains reflect a broader market recovery following recent volatility.
“The markets are continuing their rebound today, even as attacks intensify in the Middle East,” noted Jose Torres of Interactive Brokers.
Oil prices also continued to climb, driven by concerns over potential supply disruptions. The market is sensitive to these developments as they can impact global economic growth.
Brent crude, for delivery in May, rose 3.20% to $103.42 per barrel. West Texas Intermediate, for April delivery, gained 2.90% to $96.21.
The surge in oil prices since the start of the conflict in the Middle East initially led to declines in stock indices, as investors weighed the potential economic consequences.
However, “like yesterday, we are seeing a wave of recovery, perhaps technical in nature,” explained Frédéric Rozier, a portfolio manager at Mirabaud.
According to the analyst, after the initial shock, “there is a form of normalization… after two or three weeks of conflict.”
– Central Banks in Focus –
Investors are anticipating a likely hold on interest rates following meetings of the European Central Bank (ECB) on Thursday and the Bank of England. These decisions will be closely watched for signals about future monetary policy.
The U.S. Federal Reserve is also expected to maintain its current rate range of 3.50% to 3.75% when it meets on Wednesday.
Peter Cardillo of Spartan Capital Securities anticipates the Fed will address “the question of the war, and the risks of accelerating inflation with rising oil prices” in its projections.
Prior to recent escalations involving Israel and the United States in Iran, investors had anticipated potential interest rate cuts as early as June or July. CME FedWatch now indicates a shift in expectations, with October emerging as the earliest possible timeframe for a rate reduction.
The Reserve Bank of Australia (RBA) raised its benchmark interest rate by 25 basis points to 4.10% on Tuesday, citing “the strong increase in fuel prices” stemming from the Middle East conflict and the potential for increased inflationary pressures.
– Easing of Government Bond Yields –
Despite the continued rise in oil prices, “the market wants to believe that central banks will consider this inflation temporary and therefore will not overreact with rate hikes,” Rozier commented.
yields on government bonds, used to finance national debt, have been declining after initially spiking at the start of the conflict. This suggests easing concerns about long-term inflationary pressures.
The yield on the benchmark 10-year German Bund remained at 2.90% compared to 2.95% the previous day. It was around 2.64% before the war.
The French equivalent showed a yield of 3.56% against 3.61% on Monday’s close (and 3.22% before the conflict began).
The yield on the 10-year U.S. Treasury bond eased to 4.20% around 20:45 GMT, compared to 4.22% at the previous day’s close. It stood at 3.94% before the initial Israeli-American strikes in Iran.
The U.S. Dollar weakened by 0.30% against the euro, trading at $1.1539 per euro.
The dollar, often referred to as the “buck,” has gained approximately 2.27% since the start of the conflict, as it is the currency used for oil transactions.
