European stock markets

European stock markets climbed to new highs as investors grew optimistic about diplomatic efforts to ease tensions in the Middle East. The rally reflects hopes that negotiations could reduce the risk of a wider regional conflict, improving the outlook for global trade, energy prices and corporate earnings. Markets tend to react quickly to any signs of de-escalation in the region.

European stock markets rose as oil prices fell back and eurozone purchasing managers' index figures came in stronger than expected. The better-than-forecast PMI data eased recession concerns and, combined with softer energy costs, lifted investor sentiment across the region's main indices, encouraging buyers back into equities during the session.