European shares surge to two-month high on Iran-US peace hopes

European shares opened on Monday at their highest level in more than two months, supported by signs that Iran and the United States were negotiating an end to their conflict, easing concerns about inflation and a possible global economic slowdown, News.Az reports, citing Reuters.

The pan-European STOXX 600 was up 0.61% at 628.93 points as of 0712 GMT, trading just below a record high reached in late February, just before the Middle East war began.

Most sectors traded higher, with banks leading gains with a 1.7% rise, while regional airlines such as Lufthansa and Air France-KLM climbed 4.2% and 9%, respectively, as Brent crude prices fell 5% to $98 per barrel.

While U.S. President Donald Trump has said he was in no rush to finalise a deal with Iran, investors appeared to place greater weight on his Saturday statement that Washington and Iran had “largely negotiated” a memorandum of understanding on a peace deal that would reopen the Strait of Hormuz.

However, clarity remains limited on key issues dividing the two sides, including Iran’s nuclear programme.

One-fifth of the world’s crude oil and natural gas passes through the strategic waterway, which is also crucial for energy-dependent Europe. The STOXX 600 has lagged behind global peers amid concerns that higher oil prices could fuel inflation in the region.

Among individual stocks, Delivery Hero jumped 12% after reports that Uber’s board met on Saturday to discuss raising its offer for the German food delivery company, following a rejection by a major shareholder of a bid valuing the firm at more than 11.5 billion euros ($13.39 billion).

Trading volumes are expected to remain light as markets in the United States and United Kingdom are closed for public holidays.

News.Az 

By Nijat Babayev