European shares edged higher on Thursday as growing optimism about a potential resolution to the Middle East conflict lifted market sentiment. Investors assessed corporate earnings reports across the region. Major regional markets rose, with France’s CAC and London’s FTSE 100 adding 0.1% and 0.4%, respectively. Hopes for peace gained momentum after U.S. President Donald Trump announced talks between Israel and Lebanon would take place on Thursday.
The STOXX 600 is close to recouping all losses incurred since the outbreak of the conflict. However, concerns over rising oil prices affecting European economies have caused European equities to underperform compared to Wall Street. Technology led the gainers, rising 1.3%, while retail stocks climbed more than 1%. Basic resources advanced 0.8%, benefiting from rising gold prices.
On the downside, telecommunications stocks fell 1%, with Deutsche Telekom shares dropping 1.7%. The banking sector declined 0.2%, and the energy sector slipped 0.4%. Barry Callebaut plunged 16% after lowering its full-year operating profit outlook, while EasyJet shares fell 3.7% due to a warning of a bigger first-half loss.
