Key facts
- European shares closed higher Tuesday, with the STOXX 600 index up 0.1%.
- Retail and technology stocks led gains.
- Insurance shares were among the top decliners.
- Kingfisher raised its full-year profit guidance.
- Euro zone consumer confidence data is due later.
European shares closed slightly higher on Tuesday in choppy trading, as investors closely watched for potential US-Iran talks and awaited euro zone consumer confidence data. The pan-European STOXX 600 index finished up 0.1%, with most regional bourses also trading higher. Retail and technology stocks led the gains.
World leaders are gathering at the United Nations General Assembly this week, with focus on whether US President Donald Trump will meet his Iranian counterpart, Masoud Pezeshkian. The war with Iran is unpopular in the US, with Trump's approval rating falling. "Even though hopes (of a deal) are still alive that there may be some kind of breakthrough behind the scenes at the United Nations conference, given so many leaders are there, there is still a lot of caution about just how complex the war in Iran has become," said Susannah Streeter, chief investment strategist at Wealth Club.
European energy stocks shed 0.5%, tracking a dip in oil prices after reports that Iran offered to reopen the Strait of Hormuz within seven days. Meanwhile, Chinese President Xi Jinping is set to arrive in Washington on Wednesday for talks amid optimism that a trade truce deal between China and the US will be extended. "What they're (investors) looking for is any sign of agreement that there will be a free flow of AI capabilities and materials needed to keep the juggernaut running," said Streeter.
Insurance shares were among the top decliners, down 1.3%, pressured by losses in ASR Nederland and AXA. Retail shares were a bright spot, up roughly 1.8%, boosted by an 8.4% gain in Kingfisher after the European home improvement retailer raised its full-year profit guidance.