Europe Rallies on Strong Economy and Monetary Policy

European markets are rebounding after being affected by the US-Iran war, thanks to better-than-expected economic performance and clearer monetary policy guidance.

The STOXX 600 index is near record highs, with company earnings exceeding expectations. The euro has also reached a three-month peak at $1.17.

This contrasted sharply with March when the US-Iran war led to concerns about a fresh energy shock hurting the economy and fueling inflation, which triggered 'Make Europe Great Again' trades.

The STOXX 600 index saw a $2.44 billion inflow in the week to August 12, its largest since February 25 before the US-Iran war broke out.