Market Wrap: Market Awaits Middle East Resolution and US CPI

Date: March 11, 2026

Market Overview

European indices are experiencing fluctuations as investors anticipate a resolution to the ongoing conflict in Iran. Most major benchmarks in Europe are showing moderate losses, with Germany’s DAX leading the declines at -0.7%. In contrast, the IBEX and AEX indices are performing relatively well, each up approximately 0.1%.

Economic Data

Recent inflation data from Germany indicates that the European Harmonized Index of Consumer Prices (HICP) rose by 2.0% year-on-year and 0.4% month-on-month. The Consumer Price Index (CPI) reported by the Federal Statistical Office showed a year-on-year increase of 1.9% and a month-on-month increase of 0.2%. Both figures align with market expectations.

Corporate Earnings

Rheinmetall, a German defense contractor, reported its 2025 results, showcasing strong revenue growth of €9.9 billion (up 29%) and an improvement in profit margins to 18.5%. Despite this positive performance, the results fell short of market expectations, leading to a 5% decline in the company’s shares.

Porsche's CEO has indicated potential job cuts as the company explores new models aimed at enhancing profitability.

Energy Sector Updates

The International Energy Agency (IEA) is contemplating the release of part of its oil reserves to stabilize the volatile market. Reports suggest that the volume of oil released could exceed the 182 million barrels that were released in 2022.

Technology Sector Highlights

Oracle has reported earnings that surpassed market expectations, with revenue reaching $17.19 billion and earnings per share (EPS) at $1.79. The cloud segment was a significant contributor, showing a remarkable growth of 44%. Following this announcement, Oracle's stock surged nearly 9% in pre-market trading.

Market Anticipation

Investors are closely monitoring the upcoming U.S. consumer inflation (CPI) data, with consensus expectations indicating that year-on-year inflation will remain at 2.4%, while the monthly reading is anticipated to rise from 0.2% to 0.3%.

Recent Market Movements

• Nebius shares surged by 10% following Nvidia's $2 billion investment.
• The EUR/USD currency pair remained muted after the stable U.S. CPI report.
• The EUR/USD is currently fighting for the 1.16 level ahead of the U.S. CPI release.
• Efforts to release oil reserves are ongoing as the market remains volatile amidst the conflict in the Middle East.