FRANKFURT (dpa-AFX): Financial sector stocks are leading a broad market rally on Friday with particularly strong gains. Hopes for a peaceful resolution to the conflict in Iran pushed the EuroStoxx to a record high and lifted the Dax by nearly 2 percent. Banking shares were among the top performers across the indices, led by Deutsche Bank, which saw its share price jump by more than 6 percent.

The European sector index, the Stoxx Europe 600 Banks, recovered by nearly 4 percent from its recent three-week low. Commerzbank shares also rose by 4.4 percent as the heated takeover battle with Unicredit continues to intensify. In the broader financial services sector, shares of Hypoport surged by nearly 8 percent on the German small-cap SDax index.

Market participants attributed the banking rally to renewed economic optimism after U.S. President Donald Trump once again suggested that a framework agreement with Iran to settle the conflict could be reached soon. This sentiment was also reflected in the recent rise in German government bond prices. Analysts noted that a lasting agreement could help mitigate inflationary risks./tih/ajx/jha/