European equities extended early-week strength on Tuesday as crude prices retreated and geopolitical tensions showed signs of easing. The DAX rose half a percent to 25,700 points, the EuroStoxx50 climbed similarly to 6,340, and Switzerland’s SMI gained 0.26 percent.
Brent crude dropped nearly three percent to $97.43 a barrel, while US light petroleum (WTI) shed up to 3.5 percent to $92.40, after initially rising earlier in the session. Saudi Arabia plans to resume operations at its East-West pipeline, which was damaged by Houthi drone strikes on September 13, insiders told Reuters. Oil exports via the Red Sea port of Janbu could restart later in the day, according to three people familiar with the matter.
Sentiment was further buoyed by comments from a senior Iranian official telling Reuters that Tehran could reopen the Strait of Hormuz within seven days if Washington eases military pressure and lifts its blockade of Iranian ports. Speculation also grew over a potential diplomatic thaw between the US and Iran, alongside data suggesting rising oil shipments through the strait.
The technology sector was stirred by renewed enthusiasm for artificial intelligence. Meta’s new AI assistant, Meta Muse, lifted investor mood despite recent warnings about AI safety risks. The Nasdaq posted a fresh record high on Monday, and European semiconductor names were among Tuesday’s top gainers. If Muse gains broad adoption, it could boost demand for other AI tools and revive the sector after several difficult months, said Kathleen Brooks of broker XTB. However, Thomas Altmann, portfolio manager at wealth manager QC Partners, noted the new AI excitement was only partially reaching the DAX because tech stocks carry a low weighting in the index.
On individual names, Evonik shares rose as much as 4.8 percent, marking their best single-day gain in over three months, driven by reports of possible discussions with BASF. Several online outlets cited the Dealreporter service, which reported BASF had held talks this year about a potential transaction involving Evonik. Mergermarket also reported takeover rumors, an analyst said. Both companies declined to comment. Evonik’s anchor shareholder, the Essen-based RAG Foundation, holds roughly 43 percent of the company and has said it plans to gradually reduce its stake to around 25.1 percent to lower its dependence on the chemicals industry.
British DIY retailer Kingfisher jumped more than 10 percent in London after raising its full-year forecast. The FTSE-100 leader benefited from cost savings, a business tax refund, and market-share gains in Britain, Poland, and Spain during the first half, though it said operations in France were hampered by heatwaves.
