European equities advanced on Tuesday, with the Euro Stoxx 50 up 0.5% to 6,481.45 points by midday, while the Swiss SMI gained 0.2% to 14,469.21 and the UK’s FTSE 100 rose 0.2% to 10,871.52.
Declining oil prices provided support, following remarks by U.S. Treasury Secretary Scott Bessent that did not outline specific measures to escalate economic pressure on Iran. Earlier, the U.S. had threatened to isolate Iran from the global economy as part of a broader effort to force Tehran back to negotiations and secure the reopening of the Strait of Hormuz, a critical shipping route.
German economic data also bolstered sentiment, with the Ifo Business Climate Index—widely regarded as Germany’s key economic barometer—improving further in August. Economists anticipate a pickup in activity despite ongoing risks from the Iran conflict and recent drought conditions.
Attention is turning to Nvidia’s quarterly earnings, due later this week, with Jochen Stanzle of Consors Bank noting expectations for a strong performance. Semiconductor stocks rebounded from Monday’s losses, with ASML rising 1.4%, Infineon up 2.3% and STMicroelectronics gaining 0.9% in Paris.
Travel and airline shares led sector gains, climbing 1.1% on the back of lower oil prices, while automakers lagged with a 0.8% decline.
