(Il Sole 24 Ore Radiocor) - Milano, 1 apr - European share prices jumped at midday as investors reacted with relief to signals that the conflict in the Middle East could be nearing a conclusion.

Sentiment was supported by comments from US president Donald Trump, who suggested a potential end to the conflict with Iran within the next few weeks. This sparked a significant relief rally across the continent, helping markets rebound after a difficult March. The prospect of a de-escalation provided a much-needed lift to the travel, automotive, and industrial sectors, while financial stocks also trended higher.

On the data front, the eurozone's purchasing managers' index (PMI) for the manufacturing sector increased to 51.6 in March from 50.8 in February, reaching a 45-month high, while the manufacturing PMI output rose to a seven-month high of 52.0, up from 51.9 in February. In Germany, the manufacturing PMI increased to 52.2 in March from 50.9 in February, marking the highest reading since May 2022. Italy's manufacturing sector also showed resilience as the PMI rose to 51.3 from 50.6 in February, its strongest reading in over three years, even as separate data from Istat showed the national unemployment rate stood at 5.3% in February, up 0.1 percentage points compared to the previous month.

The recovery was less uniform elsewhere, as France's manufacturing PMI slipped to 50.0 from 50.1 in February, while Spain's manufacturing PMI fell to 48.7 from 50.0 in February, the weakest reading since April 2025 and the third time in the past four months that it has fallen below the 50.0 no-change mark. In the UK, the manufacturing PMI slipped to 51.0 in March from 51.7 in February, coming in below the flash estimate of 51.4. Across all reports, a reading above 50 signals expanding sector activity while one below indicates a contraction.

At 1055 GMT, London's FTSE 100 was up 1.93% at 10,373.14 points while in Frankfurt the DAX surged 2.33% at 23,161.57 points and in Paris the CAC 40 gained 1.64% at 7,944.89 points. Milan's FTSE MIB was 2.97% higher at 45,626.50 points.

while in Madrid the IBEX 35 was up 2.83% at 17,532.70 points.

(RADIOCOR) 01-04-26 12:03:14 (0319) 5 NNNN