European shares advance on Middle East peace deal optimism; earnings on watch

European shares rose on Wednesday, with oil prices dropping and investor optimism rising after US President Donald Trump cited “great progress” toward a comprehensive peace agreement with Iran.

The pan-European Stoxx 600 advanced 1 per cent to 615.62 points, as of 0703 GMT, marking a second day of gains. Major regional bourses were also higher, with London’s FTSE 100 and Spain’s IBEX 35 both up over 1 per cent each.

Energy-dependent Europe has lagged major global markets that have hit record highs driven by artificial intelligence-led optimism.

Novo Nordisk gained almost 7 per cent after the Wegovy-maker reported first-quarter revenue and adjusted operating profit above expectations, slightly raising its full-year outlook.

Norwegian energy group Equinor fell 5 per cent and German carmaker BMW’s shares added 4.6 per cent after posting their quarterly results. REUTERS