Europe's STOXX 600 opened higher on Tuesday and hovered near its record high as oil prices fell. Oil prices fell after US President Donald Trump downplayed the need for military action against Iran, and buying was broad-based.
The STOXX 600 gained 0.9% to 662.54 by 0805 GMT, while benchmark indexes in Germany, France and Italy rose about 1% each. The pan-European benchmark traded within 1% of its record high, which it last reached in early August.
Easing Middle East tensions lift sentiment
Reuters reported that Tuesday's gains came from renewed expectations that easing tensions in the region could curb energy-driven inflation and reduce pressure for higher interest rates. The index's August peak came on hopes for a resolution to the Middle East conflict.
Brent crude fell more than 2% to $90 a barrel after Trump's comments downplaying the need for military action against Iran.
Airlines, Infineon and K+S gain
Lower oil boosted airlines that have been grappling with elevated fuel costs. Lufthansa gained 1.8% and Air France-KLM added 1.2%.
Infineon added 3.1% after the chipmaker forecast revenue growth of more than 20% in 2027 and a roughly five-percentage-point increase in profitability, driven by demand from data centres, power infrastructure and software-defined vehicles. Potash producer K+S added 2.3% after beating third-quarter earnings expectations.
Source: Reuters via Investing.com
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