Global Market: European shares climb as earnings, US-Iran diplomacy lift sentiment

European stocks advanced on Wednesday as investors weighed a fresh batch of corporate earnings while closely tracking diplomatic efforts between the United States and Iran that could ease geopolitical tensions and help reopen the strategically vital Strait of Hormuz, according to a Reuters report.

The pan-European STOXX 600 index was up 0.4% at 659.29 by 07:20 GMT, with gains supported by optimism surrounding the ongoing U.S.-Iran talks.

Investor sentiment improved after U.S. President Donald Trump indicated that his administration had held productive discussions with Iran during a full day of negotiations, raising hopes that the five-month conflict could move closer to a resolution, according to Reuters.


Mining stocks lead the rally
Mining companies were among the top performers, with the sector climbing 2.4% as broader risk appetite improved across European markets.

The easing of geopolitical concerns also helped support investor confidence, with market participants watching for further developments that could restore shipping through the Strait of Hormuz, a critical route for global energy supplies.

Earnings remain in focus
Corporate earnings continued to drive stock-specific moves across the region.

Danish pharmaceutical giant Novo Nordisk fell 3.5% despite raising its full-year sales and profit outlook. Reuters reported that investors focused instead on a slight sales miss for the company's new Wegovy obesity pill and a setback in clinical trials for its next-generation obesity treatment, CagriSema.

The results underscored the competitive pressure Novo Nordisk faces from rival Eli Lilly in the rapidly expanding obesity drug market, where investors are looking for sustained growth and successful product launches.

Sandoz jumps on strong sales
Swiss generic drugmaker Sandoz surged 7% after reporting a 9% increase in second-quarter net sales, providing a boost to healthcare stocks.

Meanwhile, Siemens Energy gained 3.9% after posting record third-quarter results. Reuters reported that the company benefited from robust demand linked to artificial intelligence-driven data centre investments as well as strong orders from the Middle East.

Markets await further geopolitical developments
While earnings remained the primary driver of individual stock movements, investors continued to monitor diplomatic progress between Washington and Tehran for broader market direction.

A breakthrough in negotiations and the reopening of the Strait of Hormuz could ease concerns over global energy supplies and provide further support to equity markets, while upcoming corporate results are expected to shape sector performance in the days ahead.