European shares rise on Trump’s Iran comments

EUROPEAN shares ticked higher on Tuesday after investors welcomed news that the US had paused a planned attack against Iran following Teheran’s latest peace proposal, with chances of a deal seeming close.

US President Donald Trump said there was now a “very good chance” of reaching a deal limiting Iran’s nuclear programme. Oil prices fell as much as 2 per cent even as they remained over US$100 a barrel, while bonds steadied after a steep selloff in the past few sessions.

The pan-European Stoxx 600 rose 0.2 per cent to 611.22 points, as of 0702 GMT, but stayed below prewar levels.

European equities have lagged behind global peers, with the region’s dependence on oil imports weighing on markets, while US and global markets have rebounded on artificial intelligence-led optimism.

The AI trade and the tech rally will face a test on Wednesday when the world’s most valuable company, Nvidia, reports its quarterly results.

Among early movers, Standard Chartered dipped 0.8 per cent. The lender said it plans to cut more than 7,000 jobs over the next four years as it boosts AI adoption.

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Vallourec tumbled 10.3 per cent after ArcelorMittal sold secondary shares of a 10 per cent stake in the French steel tubes maker at a discount. REUTERS