European Stocks Extend Gains as Iran Concerns Ease

2026-08-25 11:07 By Joana Ferreira 1 min. read

European stocks extended their gains on Tuesday afternoon, with both the STOXX 50 and broader STOXX 600 up around 0.6%, as investors welcomed a softer-than-feared US sanctions package against Iran.

Oil prices fell further as markets saw limited immediate risks to global crude supplies, while defense stocks led sectoral gains, led by an over 8% jump in Melrose Industries after the GKN Aerospace owner said it expects to resume full production at its Garden Grove facility by September 28.

On the data front, German business morale reached a one-year high in August, while German GDP growth was revised up to 0.3% in Q2 2026 from a preliminary 0.2%, supported by stronger exports.

Attention now turns to Nvidia’s earnings later this week for further clues on the strength of AI-related demand.

Investors will also be watching Fed Chair Kevin Warsh’s debut speech at the Jackson Hole symposium for signals on the recent rise in bond yields and the central bank’s independence.



News Stream
European Stocks Extend Gains as Iran Concerns Ease
European stocks extended their gains on Tuesday afternoon, with both the STOXX 50 and broader STOXX 600 up around 0.6%, as investors welcomed a softer-than-feared US sanctions package against Iran. Oil prices fell further as markets saw limited immediate risks to global crude supplies, while defense stocks led sectoral gains, led by an over 8% jump in Melrose Industries after the GKN Aerospace owner said it expects to resume full production at its Garden Grove facility by September 28. On the data front, German business morale reached a one-year high in August, while German GDP growth was revised up to 0.3% in Q2 2026 from a preliminary 0.2%, supported by stronger exports. Attention now turns to Nvidia’s earnings later this week for further clues on the strength of AI-related demand. Investors will also be watching Fed Chair Kevin Warsh’s debut speech at the Jackson Hole symposium for signals on the recent rise in bond yields and the central bank’s independence.
2026-08-25
European Stocks Rise as Tech Selloff Eases
European stocks traded higher on Tuesday as risk sentiment improved and the recent selloff in global technology shares showed signs of easing. The STOXX 50 rose 0.6%, while the broader STOXX 600 gained 0.4%. Investors are now turning their attention to chip giant Nvidia’s earnings report later this week for fresh clues about the strength and durability of demand for AI-related technology. Elsewhere, oil prices remained under pressure after US threats of an “economic D-Day” of sanctions on Iran failed to deliver the impact markets had anticipated. Investors were also assessing the implications of the US Treasury Department’s expanded debt buyback programme, following reports that the Treasury could draw on its nearly $1 trillion General Account to help finance the purchases rather than relying on new debt issuance. In Europe, meanwhile, revised data showed that Germany’s economy grew 0.3% in the second quarter of 2026, slightly above the initial estimate.
2026-08-25
European Stocks Head for Higher Open
European equity markets were set for a higher open on Tuesday as risk sentiment improved, with the recent selloff in global technology stocks showing signs of easing. Markets looked ahead to chip giant Nvidia’s earnings report later this week for clues on the strength of AI-related demand. Investors also continued to assess the implications of the US Treasury Department’s expanded debt buyback program following reports that it could tap its nearly $1 trillion General Account to help fund the purchases instead of relying on new issuance. In Europe, investors will assess Germany’s final Q2 GDP figures and August Ifo Business Climate survey, alongside French consumer confidence data. Meanwhile, there are no major earnings releases scheduled in Europe on Tuesday. In premarket trade, Euro Stoxx 50 and Stoxx 600 futures were up 0.3% and 0.2%, respectively.
2026-08-25