European stock markets steadied as investors closely monitored tensions in the Middle East, with the United States and Iran failing to reach a peace agreement.
By the close in London, the Stoxx Europe 600 index showed little change. Mining stocks advanced 2.6% to a record high, supported by rising prices for copper and other metals. Natalie Scott-Gray, a senior metals analyst at StoneX, noted that capital is flowing into the sector, largely disregarding news related to Trump.
Telecommunications stocks also outperformed, with Airtel Africa Plc surging 14% to a new peak after its major shareholder, Bharti Telecom, hinted at a potential increase in its stake.
Conversely, sectors such as luxury goods were among the weakest performers, as renewed setbacks in U.S.-Iran negotiations heightened concerns over the industry's growth prospects. A basket of European luxury stocks tracked by Goldman Sachs declined by 3.5%.
Significant differences persist between the United States and Iran regarding a framework to end the conflict and reopen the Strait of Hormuz. Trump stated that he is considering reviving a plan to escort vessels through the Persian Gulf.
"Another week has passed without any progress on navigation through the Strait of Hormuz, while markets continue to hope for a swift peace agreement," said Roberto Scholtes Ruiz, Chief Strategy Officer at Singular Bank. "I expect this sentiment to carry over into the coming week."
In corporate news, Delivery Hero SE jumped 18% after long-term shareholder Prosus agreed to sell its 5% stake in the German e-commerce company to Aspex Management. Compass Group's shares rose 2.3% after the catering services firm raised its full-year profit guidance.
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