European stock markets advanced for a second consecutive session, buoyed by a series of positive corporate earnings reports. Concurrently, investors are closely monitoring developments in negotiations between the United States and Iran.
The Stoxx Europe 600 index closed 0.2% higher on Tuesday. Shares of Swedish online gaming company Evolution AB surged 7% after it approved a €2 billion share buyback program. Electronics retailer Currys Plc saw its stock soar 15%, marking its largest single-day gain since September 2025, following an upward revision to its full-year profit guidance.
Online trading services provider IG Group Plc jumped 11% to a record high. This came after the company reported first-quarter revenue that exceeded analyst expectations and raised its full-year outlook.
European equities pared some of their earlier gains as global bond yields rose and the crowded trade in U.S. chipmakers continued to unwind. ASML Holding was the biggest drag on the Stoxx 600 index.
The Middle East conflict remains a key market focus. U.S. President Donald Trump has threatened to resume military strikes against Iran in the coming days as part of efforts to broker a ceasefire agreement. Meanwhile, NATO is exploring the possibility of assisting vessels through the blockaded Strait of Hormuz if it does not reopen by early July.
Roger Lee, Head of Equity Strategy at Cavendish, noted there is some hope in the market that "this latest pause in the conflict will lead to a U.S.-Iran deal and the reopening of the Strait of Hormuz."
Since the outbreak of the Middle East conflict, European stocks have underperformed their U.S. counterparts, with traders concerned that rising energy prices will pressure the region's economic growth.
According to a Bank of America survey of European fund managers, investor pessimism regarding Europe's growth prospects has reached its highest level since October 2024, reflecting a significant shift in sentiment since the Iran conflict began.
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