European stocks climbed higher Tuesday on optimism over a potential ceasefire between Israel and Iran, ahead of Federal Reserve Chair Jerome Powell’s upcoming appearance before Congress.
At 03:05 ET (07:05 GMT), the DAX index in Germany gained 1.9%, the CAC 40 in France climbed 1.9% and the FTSE 100 in the U.K. rose 0.6%.
Israel-Iran ceasefire boosts sentiment U.S. President Donald Trump said earlier Tuesday that his recently announced ceasefire between Israel and Iran was now in effect, potentially marking an end to renewed hostilities between the Middle Eastern powers.
"THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT!" Trump said in a post on Truth Social.
The U.S. president had earlier indicated the possibility of a truce, started by a 12-hour initial ceasefire period initiated by Iran, followed by Israel joining the ceasefire at the 12th hour.
The announcement comes days after the U.S. bombing of three Iranian nuclear sites. Tehran also retaliated on Monday by launching missile attacks at the U.S. airbase in Qatar.
Powell to testify before Congress Away from geopolitical tensions, the spotlight will turn onto Federal Reserve Chair Jerome Powell’s upcoming appearance before Congress, with the U.S. central bank having decided to keep interest rates unchanged this year.
This decision has provoked the wrath of President Trump, and he continued his criticism of Powell, saying that interest rates in the country should be at least “two to three points lower.”
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. In a social media post earlier Tuesday, Trump said “I hope Congress really works this very dumb, hard headed person, over. We will be paying for his incompetence for many years to come,” referring to Powell and his reluctance to cut interest rates.
The central bank had last week kept interest rates steady, with Powell warning that Trump’s tariffs could increase inflation and give the central bank even less impetus to cut rates further.
There are a number of central bankers due to speak in Europe as well, including Bank of England Governor Andrew Bailey and European Central Bank President Christine Lagarde.
The Germany IFO business survey for June is also due later in the session, and is expected to show a slight improvement in the eurozone’s largest economy.
AztraZeneca gets U.S. drug approval In the corporate sector, AstraZeneca (NASDAQ:AZN) said that U.S. regulators have approved its precision drug Datroway to treat a type of lung cancer.
Sthree (LON:STEMS), the U.K.-based specialist staffing company, reported a hefty year-on-year decline in group net fees for the first half of fiscal year 2025, reflecting challenging market conditions but showing modest sequential improvement in the second quarter.
Bunzl (OTC:BZLFY) said that trading for the first half of 2025 is in line with expectations, as the distribution group announced an acquisition in Brazil and reaffirmed its full-year outlook.
Crude falls sharply on ceasefire
Crude prices fell sharply Tuesday on hopes of an end to the Iran-Israel conflict, alleviating worries of supply disruptions in the Middle East - a major oil-producing region.
At 03:05 ET, Brent futures dropped 3.9% to $67.79 a barrel and U.S. West Texas Intermediate crude futures fell 3.9% to $65.84 a barrel.
Both the oil benchmarks settled over 7% lower in the previous session after rallying to five-month highs after the U.S. attacked Iran’s nuclear facilities over the weekend, and have continued to drop, falling to their lowest in two weeks.
Iran is OPEC’s third-largest crude producer, and the easing of tensions could allow it to export more oil and prevent supply disruptions.
