European stocks rise, STOXX 600 nears record high as oil prices fall

European shares opened higher on Tuesday, with the STOXX 600 hovering near its record high as falling oil prices and easing concerns over a potential military escalation between the United States and Iran lifted investor sentiment, Reuters reported.

The pan-European STOXX 600 index rose 0.9% to 662.54 by 0805 GMT. Germany's DAX, France's CAC 40 and Italy's benchmark index each gained around 1%.

According to Reuters, the STOXX 600 was trading within 1% of its record high, last reached in early August, as investors grew increasingly hopeful of an easing in the Middle East conflict.


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Market sentiment improved after US President Donald Trump played down the possibility of military action against Iran for now. His comments helped ease concerns over energy supply disruptions and the inflationary impact of elevated oil prices.

Brent crude futures fell more than 2% to around $90 a barrel, providing relief to airlines facing higher fuel expenses. Lufthansa shares gained 1.8%, while Air France-KLM advanced 1.2%.

Among individual stocks, Infineon Technologies climbed 3.1% after the German chipmaker forecast revenue growth of more than 20% in 2027. The company also projected an increase of around five percentage points in profitability, supported by demand from data centres, power infrastructure and software-defined vehicles.

Potash producer K+S rose 2.3% after reporting third-quarter earnings that exceeded market expectations.

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Investors are increasingly betting that easing geopolitical tensions could reduce energy-driven inflation and limit the need for further interest rate increases, providing additional support to European equities.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)