European Shares Decline As US-Iran Peace Deal Hopes Fade

(RTTNews) - European stocks traded lower on Tuesday as hopes for a U.S.-Iran peace deal diminished and data showed German inflation increased for the second consecutive month as a result of another rise in energy prices due to the Iran war.

U.S. President Donald Trump said the fragile ceasefire between Washinton and Tehran was on "massive life support," raising fresh doubts over the chances of a lasting truce.

German consumer price inflation rose to 2.9 percent in April from 2.7 percent in March, according to final data from Destatis. The rate came in line with the estimate published on April 29 and also hit the highest since December 2023.

EU harmonized inflation edged up to 2.9 percent, as estimated, from 2.8 percent in March.

The pan-European STOXX 600 fell 0.7 percent to 608.75 after closing marginally higher in the previous session.

The German DAX dropped 0.8 percent, France's CAC 40 shed 0.6 percent and the U.K.'s FTSE 100 was down half a percent, tracking a jump in regional bond yields.

German steelmaker Salzgitter soared 6 percent. The company lifted its fiscal 2026 earnings forecast after reporting turnaround results for the first quarter.

Technology group Jenoptik rallied 10 percent after reporting a 74 percent jump in its Q1 order intake.

Premium beauty retailer Douglas tumbled 3.7 percent after widening its second-quarter loss due to impairments.

Bayer gained 6.2 percent after reporting stronger first-quarter earnings, underpinned by a robust performance in its crop science unit.

Reinsurer Munich Re slumped 4.6 percent after saying it has investments of as much as €2.5 billion ($2.9 billion) in private credit.

Siemens Energy declined 1.6 percent despite hiking its FY26 outlook.

Imperial Brands rose 1.2 percent. The London-listed tobacco company maintained its annual outlook after reporting higher adjusted earnings and strong cash generation in the first half of 2026.

Vodafone dropped 3 percent after the telecommunications operator lost clients in its key German market last quarter.

Wizz Air Holdings fell nearly 2 percent. The budget airline said it expects to report breakeven to slightly positive earnings for its 2025/26 financial year.