European Stocks Close Higher On Easing Middle East Tensions, Weak Oil Prices

(RTTNews) - European stocks closed broadly higher on Tuesday as falling energy prices and slightly easing fears of further escalation in the Middle East conflict helped lift sentiment. Investors also digested the latest batch of economic data from the region.

The less-than-feared market disruption from the fresh sanctions imposed by the U.S. on Iran supported sentiment.

Brent crude futures dropped nearly 4% to around $87 a barrel, easing concerns about inflation and interest rates.

The pan European Stoxx 600 climbed 0.35%. The UK's FTSE 100 ended up by 0.29% and Germany's DAX moved up 0.61%, while France's CAC 40 closed lower by 0.16%. Switzerland's SMI settled 0.54% up.

Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Greecce, Iceland, Ireland, Norway, Poland, Portugal, Russia and Sweden closed higher.

Netherlands, Spain and Türkiye ended weak.

In the UK market, Melrose Industries soared more than 10%. AstraZeneca climbed 3%. Next, Polar Capital Technology Trust, IAG, Anglo American Plc, Persimmon, Rolls-Royce Holdings, Admiral Group, Spirax Group, Computacenter, Marks & Spencer, Barratt Redrow, Experian, SSE, Glencore and Kingfisher gained 1.5%-2.3%.

Standard Chartered ended down 2.5%. Diageo, Compass Group, British American Tobacco, Smith & Nephew and Relxt shed 1%-2%.

In the German market, Scout24 jumped 4.5%. Siemens Energy climbed 2.7%. Zalando, Siemens, Bayer, RWE, Heidelberg Materials, Daimler Truck Holding, Infineon, Gea Group, E.ON, MTU Aero Engines and Allianz gained 1%-2.2%.

Adidas, Siemens Healthineers, BASF, Beiersdorf, Brenntag, Rheinmetall and Henkel ended lower by 1%-1.7%.

In the French market, Legrand gained 2.5%. Schneider Electric, Stellantis, Saint-Gobain, Safran, Eurofins Scientific, Accor and Airbus moved up 1%-1.6%.

Kering, Renault, Pernod Ricard, BNP Paribas, LVMH, Capgemini, EssilorLuxottica, Hermes International, Teleperformance, Danone, Carrefour and L'Oreal ended down by 1%-3%.

In economic news, monthly survey results from the statistical office INSEE showed France's consumer confidence index posted 86 in August, the same as in July. The score continued to remain below its long-term average. The score was expected to rise to 87.

German business confidence rose to the highest level in a year in August, indicating the resilience of the economy despite ongoing tensions in the Middle East, low water levels in the main transportation waterways and higher energy prices, survey results from the ifo Institute showed Tuesday.

The business climate index rose to 88.8 in August from 86.7 in the previous month. This was the highest score since last August.

Data from Destatis showed Germany's economy expanded more than estimated in the second quarter, growing 0.3%, which was revised up from 0.2% estimated initially. This followed an expansion of 0.4% in the first quarter.

On a yearly basis, GDP growth accelerated to 1% in the second quarter from 0.7% in the first quarter. The rate was revised up from 0.9% estimated on July 30. Price-adjusted GDP also grew 1% from a year ago after rising 0.8% in the preceding period.