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Markets Score 55 Bullish

European Shares Rise on Hopes of Middle East De-escalation Amid Trump's Extended Deadline

Apr 07, 2026 09:09 UTC
^STOXX, CL=F, ^VIX
Immediate term

European stocks edged higher as investors anticipated potential de-escalation in the Middle East conflict. Markets reacted to U.S. President Donald Trump's extended deadline for Iran to comply with demands.

  • European stocks rose on hopes of Middle East de-escalation.
  • STOXX Europe 600 increased 0.6 percent to 600.11.
  • Trump extended deadline for Iran, warning of infrastructure strikes.
  • Eurozone PMI revised to 50.7 in March.
  • Universal Music Group shares surged 13 percent on acquisition offer.
  • ASML Holding fell 2.8 percent due to U.S. semiconductor restrictions.

European shares climbed on Tuesday as investors anticipated a possible resolution to the Middle East conflict. The STOXX Europe 600 index rose 0.6 percent to 600.11, with the German DAX up 0.7 percent and the French CAC 40 gaining 1.2 percent. Optimism grew as the 8 p.m. EDT deadline set by U.S. President Donald Trump approached, with hopes that a deal could prevent further escalation. Trump's warning of potential strikes on Iranian infrastructure, including power plants and bridges, if the Strait of Hormuz remains closed, influenced market sentiment. The euro also strengthened against the dollar following revised March eurozone PMI data, which showed a slight increase to 50.7 from 50.5. In the U.K., the composite output index fell to 50.3 in March from 53.7 in February. Universal Music Group saw a 13 percent surge after a potential $64.31 billion acquisition offer from Pershing Square Capital. Meanwhile, ASML Holding dropped 2.8 percent following proposed U.S. legislation restricting semiconductor equipment sales to China.

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