Key facts
- European shares edged up at the open on Tuesday.
- A preliminary agreement between the U.S. and Iran is being assessed by investors.
- The deal could impact oil supplies through the Strait of Hormuz.
- Oil prices extended declines, with Brent Crude trading near $82 a barrel.
- The Bank of Japan raised interest rates to a 31-year high.
- Markets are anticipating further rate hikes from the ECB and the Federal Reserve.
European shares edged higher in early trading on Tuesday, building on the previous session's gains. Investors are currently assessing a preliminary agreement between the U.S. and Iran, which could potentially lead to the resumption of oil supplies through the critical Strait of Hormuz. This development has contributed to a decline in oil prices, with Brent Crude trading near $82 a barrel, easing concerns about inflation and potential further monetary tightening.
The pan-European STOXX 600 index was up 0.3% by 0717 GMT, led by a 1.2% rise in the industrial goods & services sector.
Central banks remain a key focus. The Bank of Japan announced a rate hike on Tuesday, pushing borrowing costs to a 31-year high to combat price pressures. Market participants are also closely watching for rate decisions from the U.S. Federal Reserve and the Bank of England later this week, with traders pricing in another hike by the European Central Bank by year-end.
In corporate news, STMicroelectronics fell 2.5% after announcing plans to issue $1.5 billion in convertible bonds. Meanwhile, UniCredit saw a 2.8% gain after Germany rejected the Italian lender's offer to buy Commerzbank shares, citing valuation concerns and support for an independent Commerzbank, whose shares rose 1%.