European stocks rose on Tuesday after investors welcomed news that the United States had suspended an attack against Iran following Tehran's latest peace proposal, amid hopes of a deal soon.
US President Donald Trump said there is now a very good chance of reaching an agreement to limit Iran's nuclear program. Oil prices fell by as much as 2% but remained above $100 a barrel, while bonds stabilized after a sharp sell-off in recent sessions.
The pan-European STOXX 600 index rose 0.4% to 612.81 points, but remains below pre-war levels.
Germany’s DAX index rose 0.7% to 24,477.50 points, Britain’s FTSE index climbed 0.4% to 10,373.46 points, and France’s CAC index jumped about 0.5% to 8,029.42 points.
European markets lagged behind their global counterparts, as the region’s reliance on oil imports negatively impacted markets, while US and global markets rebounded, supported by optimism led by artificial intelligence companies.
Shares of AI-related technology companies are set to face a test on Wednesday when Nvidia, the world's most valuable company by market capitalization, announces its quarterly results.
Standard Chartered's shares fell 0.8% after the bank announced plans to lay off more than 7,000 employees over the next four years as part of its push to adopt artificial intelligence.
Vallourec's stock also plunged 10.3%, after ArcelorMittal sold a 10% minority stake in the French steel pipe maker at a discounted price.
