European stocks advanced on Tuesday, with the STOXX 50 up 0.9% and the STOXX 600 gaining 0.6%, recovering from modest losses in the previous session. Sentiment improved on renewed hopes for a ceasefire between the US and Iran. Both countries are reportedly considering another round of negotiations after talks over the weekend ended without an agreement, with the aim of resuming discussions before the current two-week ceasefire expires.
At the same time, President Trump has ordered a US naval blockade of the Strait of Hormuz. Oil prices have eased slightly but remain elevated. The corporate earnings season is also getting underway: Kering edged up 0.5% ahead of its quarterly results due later today. ASML Holding jumped 2%, Siemens added 2.2%, Banco Santander climbed 1.7%, and Mercedes-Benz advanced 1.8%.
In contrast, LVMH fell 2.4% after results disappointed investors. The luxury group said that the conflict with Iran had reduced its group sales by at least 1%.
