Key facts
- The STOXX 600 was trading within 1% of its record high, last reached in early August.
- Trump downplayed the need for military action against Iran "at this point", Reuters reported.
- Infineon forecast revenue growth of more than 20% in 2027 and a roughly five-percentage-point rise in profitability.
- K+S added 2.3% after beating third-quarter earnings expectations, Reuters reported.
Europe's benchmark STOXX 600 opened higher on Tuesday and gained 0.9% to 662.54 by 0805 GMT, Reuters reported. Benchmark indexes in Germany, France and Italy were up about 1% each. The pan-European index was trading within 1% of its record high, last reached in early August on hopes for a resolution to the Middle East conflict.
Brent crude fell more than 2% to $90 a barrel after US President Donald Trump downplayed the need for military action against Iran "at this point", Reuters reported. The gains were driven by renewed expectations that easing tensions in the region could curb energy-driven inflation and reduce pressure for higher interest rates, according to the report.
Airlines that have been grappling with elevated fuel costs rose, with Lufthansa gaining 1.8% and Air France-KLM adding 1.2%. Among individual stocks, Infineon added 3.1% after the chipmaker forecast revenue growth of more than 20% in 2027 and a roughly five-percentage-point increase in profitability, driven by demand from data centers, power infrastructure and software-defined vehicles. Potash producer K+S added 2.3% after beating third-quarter earnings expectations.