European Shares Edge Higher As Trump Says Iran Talks Remain Active

(RTTNews) - European stocks traded higher on Tuesday and oil prices fell more than 1 percent as U.S. President Donald Trump confirmed ongoing U.S.-Iran talks and said he had persuaded Israel and Hezbollah to dial back fighting.

Meanwhile, a European Parliament committee has approved removing most EU duties on U.S. goods to honor last year's trade deal and prevent a tariff escalation.

In economic releases, Eurozone inflation rose from 3.0 percent to 3.2 percent in May and the core inflation exceeded forecasts, reinforcing expectations that the European Central Bank will hike interest rates by 25 basis points when it meets next week.

The pan-European STOXX 600 surged 0.6 percent to 625.12 after falling 0.8 percent on Monday.

The German DAX rallied 1 percent, France's CAC 40 added 0.9 percent and the U.K.'s FTSE 100 was up 0.4 percent.

STMicroelectronics soared nearly 9 percent after the chipmaker raised the revenue target for its data center business.

Abivax shares plunged 28 percent after the French biotech company said some patients developed cancer in a late-stage clinical trial for its inflammatory bowel drug.

U.K. defense company Chemring Group slumped 6.3 percent after reporting lower first-half profits.

Real estate investment trust Hammerson rose about 1 percent after pricing a €350m bond.

Real estate group British Land Company gained almost 2 percent after naming Joanne McNamara as its new chief executive officer.

Wizz Air Holdings rallied 2.4 percent. The low-cost carrier posted higher passenger traffic in May and said it is 70 percent hedged for its summer fuel need.

British American Tobacco tumbled 4.4 percent despite backing its outlook for the 2026 financial year.

Dutch technology investor Prosus jumped 10 percent after it has been given more time to fulfil its commitment to reduce its holding in Berlin-based food-delivery company Delivery Hero.