European Stocks Extend Rebound

The STOXX 50 rose 0.5% and the STOXX 600 gained 0.7%on Tuesday, recovering from lackluster morning trading and extending modest gains from the previous session despite an escalation in the conflict with Iran. Uncertainty continues to surround the formation of an international coalition, with some countries appearing reluctant to align with US President Donald Trump’s proposal. Meanwhile, Iran stepped up attacks on energy infrastructure across the Persian Gulf, while Israel reported it had killed Iran’s security chief, further heightening tensions. As a result, oil prices moved higher once again. Utilities and energy led the gains, with financials also trading higher. Enel, TotalEnergies, and Eni rose close to 3% each. In contrast, luxury brands fell sharply with Hermes and LVMH dropping nearly 2% each.

The STOXX 50 rose 0.3% and the STOXX 600 gained 0.5% heading into the afternoon session on Tuesday, recovering from a lacklustre open and extending modest gains from the previous session despite an escalation in the conflict with Iran. Uncertainty continues to surround the formation of an international coalition, with some countries appearing reluctant to align with US President Donald Trump’s proposal. Meanwhile, Iran stepped up attacks on energy infrastructure across the Persian Gulf, while Israel reported it had killed Iran’s security chief, further heightening tensions. As a result, oil prices moved higher once again. Utilities and energy led the gains, with financials also trading higher. E.ON (+3.1%), Enel (+3.3%), Repsol (+2.8%), and Eni (+2.7%) posted solid advances. In contrast, defence stocks were among the worst performers, including Rheinmetall (-1.9%) and Leonardo. Dassault Systèmes (-1.7%), ASML Holding (-1.1%), and LVMH (-1.2%) also declined.

Both the STOXX 50 and the STOXX 600 hovered around the flatline on Tuesday, failing to hold onto modest gains from the previous session, as optimism over efforts to protect shipping through the Strait of Hormuz faded. Uncertainty persists around the formation of an international coalition, with some countries appearing reluctant to align with US President Trump’s proposal. Meanwhile, Iran stepped up attacks on energy infrastructure across the Persian Gulf, pushing oil prices higher. Most sectors traded in negative territory, with only utilities and energy posting gains. Shares of ASML Holding fell around 1%, while LVMH (-0.7%), Hermes (-0.5%), SAP (-0.2%), Siemens (-0.7%), and Banco Santander (-0.6%) also declined. On the upside, Sartorius jumped nearly 5% to lead the STOXX 600 after its subsidiary, Sartorius Stedim Biotech, refined its strategy with a stronger focus on biopharma and set new mid-term growth targets.