European stocks experienced an upward trend on Wednesday, building on gains from the previous trading session. This increase follows comments from U.S. President Donald Trump, who stated that the U.S. and Iran are currently “in negotiations right now” and expressed a strong desire to reach an agreement.
Despite Tehran’s dismissal of the U.S. president’s claims regarding ongoing talks, various media reports indicate that diplomatic efforts aimed at resolving tensions in the region have intensified.
The British pound continues to face pressure against the dollar, following the release of data showing that U.K. consumer price inflation remained steady at 3.0 percent in February, aligning with expectations.
The pan-European Stoxx 600 index surged by 1.5 percent to reach 587.91, following a 0.4 percent increase in the previous session. Key indices across Europe also saw significant gains:
- The German DAX rose by 1.8 percent.
- France’s CAC 40 increased by 1.6 percent.
- The U.K.’s FTSE 100 saw an uptick of just over 1 percent.
Airline stocks experienced a boost, with Lufthansa gaining 1.6 percent and Air France KLM soaring by 3.3 percent, as oil prices fell nearly 4 percent in anticipation of a potential de-escalation in the Middle East conflict.
However, shares of Orange SA declined by over 1 percent. The French telecommunications company announced a deal with Verdoso, aimed at potentially divesting its media services business, Globecast.
Vallourec, a firm specialising in tubular solutions, saw its shares surge by 4 percent after securing five contracts for oil country tubular goods (OCTG) products destined for Indonesia.
Jenoptik, a German manufacturer of photonics and semiconductor equipment, experienced significant growth with an 8 percent increase in its share price. Following the release of weaker full-year results for 2025, the company expressed optimism for fiscal 2026, anticipating both revenue growth and an improved EBITDA margin.
In London, United Utilities’ shares rallied by 3 percent. The water utility company provided a pre-close update ahead of its full-year results for the year ending March 31, 2026, indicating that performance remains consistent with expectations.