European Stocks Rise to 6-Week High

The Stoxx 50 advanced more than 1% on Tuesday, hitting a six-week high as investors grew optimistic that Middle East tensions could ease following signals from President Trump that the US may be open to negotiations with Iran. ASML Holding gained over 1.5%, while LVMH rose 0.9% despite a weaker quarterly update that missed expectations in the previous session. L’Oreal added 1.1%, Siemens climbed 3.9%, Schneider Electric rose 2.4%, and Banco Santander advanced 2.9%, while Linde slipped nearly 3%. The broader Stoxx 600 also rose 0.9% to a six-week high, supported by gains in Novo Nordisk, up 3.7% after announcing a partnership with OpenAI aimed at accelerating drug discovery through AI-driven analysis and faster development timelines, and Nestle, which gained 1.5%. Shell fell almost 3% as oil prices eased on hopes that peace talks could continue despite ongoing tensions and a blockade. Attention now turns to upcoming earnings from ASML and Hermes.

European stocks advanced on Tuesday, with the STOXX 50 climbing 0.9% and the STOXX 600 gaining 0.6%, recovering from modest losses in the previous session. Investor sentiment improved on renewed hopes of a ceasefire between the US and Iran. Both countries are reportedly considering another round of negotiations after weekend talks ended without an agreement, aiming to resume discussions before a two-week ceasefire expires. Meanwhile, President Trump has initiated a US naval blockade of the Strait of Hormuz. Oil prices have eased slightly but remain at elevated levels. Also, the earnings season is getting underway, with Kering edging up 0.5% ahead of its quarterly results due later today. ASML Holding jumped 2%, Siemens gained 2.2%, Banco Santander rose 1.7%, and Mercedes-Benz advanced 1.8%. In contrast, LVMH shares fell 2.4% after the company’s results disappointed investors, with the luxury group noting that the conflict with Iran had reduced group sales by at least 1%.

European equity markets were set for a stronger open on Tuesday as optimism grew that the US and Iran could resume negotiations aimed at securing a longer-term ceasefire. President Donald Trump said Tehran had reached out to Washington just hours after the US imposed a naval blockade on Iranian oil shipments in the Strait of Hormuz. Oil prices moved lower, easing inflationary pressures and reducing expectations that central banks will maintain or further tighten interest rate policy. In Europe, investors are set to monitor German wholesale price data and Spanish inflation figures, alongside corporate earnings from companies including BMW, Kering, and Publicis. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were up 0.4% and 0.2%, respectively.