Global Market: European shares rise as oil slumps on US-Iran de-escalation; tech earnings in focus

European stock markets rallied on Monday as easing tensions between the United States and Iran lifted investor sentiment, while a sharp decline in oil prices supported sectors sensitive to fuel costs. According to Reuters, investors also turned their attention to a crucial week of quarterly earnings from major U.S. technology companies that could shape the outlook for global equity markets.

The pan-European STOXX 600 index rose 0.8% to 649.34 in early trading, with most sectors trading in positive territory.

Market sentiment improved after signs of a pause in hostilities between Washington and Tehran. A senior Iranian official said Iran would halt attacks if the United States also refrains from further military action, following Washington's decision to pause its bombing campaign amid concerns over depleting its weapons stockpile.


The easing geopolitical tensions triggered a sharp selloff in crude oil prices. Brent crude futures fell around 6% to trade near $90 a barrel, weighing on European energy stocks, which declined 2%. Utilities were the only other sector to trade in negative territory.

Lower oil prices provided a strong boost to travel and leisure stocks, which climbed 2.4% as investors anticipated lower operating costs for airlines. Lufthansa and International Airlines Group (IAG) each gained 3.7%, while Ryanair advanced 3.4%.

Investors are also preparing for one of the busiest weeks of the earnings season, with results due from major U.S. technology companies including Microsoft, Meta Platforms, Amazon and Apple. The earnings are expected to offer fresh insight into whether enthusiasm surrounding artificial intelligence can continue to support the global equity rally.

Corporate earnings are also gathering pace across Europe, providing investors with additional cues on the region's economic resilience.

Among individual stocks, Vodafone rose 3.7% after the telecom operator upgraded its outlook following its Safaricom transaction. The company said it now expects to deliver results at the upper end of its revised guidance range, providing further support to its shares.