Source: Sharecast
The benchmark Stoxx Europe 600 index finished 0.6% higher at 643.19, completely erasing the losses of the past two sessions, with all major indices across the continent putting in a decent performance. US indices, meanwhile, jumped early on with the S&P 500 up nearly 1% and the tech-heavy Nasdaq surging 1.3%.
“Traders have been treated to an odd sight today as oil prices rise in tandem with equities and precious metals," said Chris Beauchamp, chief market analyst at IG.
"Usually the former rises at the expense of the latter two, but then this week was always going to be a tug-of-war between earnings season and the news from the Middle East. While both sides continue to work their way through their weapons stockpiles, it seems like neither want to start climbing the escalation ladder."
Oil prices head north despite reports of a renewed diplomatic push, with mediators said to be proposing a ten‑day ceasefire. However, news that Yemen’s Iranian-backed Houthis have introduced a naval blockade against Saudi Arabia was also in focus. Brent was 2.1% higher at $91.12 a barrel.
"The [Houthis] move raises concerns about shipping disruptions through key trade routes and introduces additional uncertainty into global energy markets," said David Morrison, senior market analyst at Trade Nation.
In economic news, German economic sentiment improved more than expected in July, according to a survey released on Tuesday by the ZEW Center for European Economic Research in Mannheim. The ZEW economic expectations index rose to 26.3 from 10.5 in June, coming in above expectations for a reading of 18.0.
Meanwhile, the UK unemployment rate was 4.9% in March to May, unchanged on the previous month, according to the Office for National Statistics. This was marginally below forecasts for 5.0%, although other indicators continued to point to a softening jobs market.
On the corporate front, European chip groups ASML, Infineon Technologies, STMicroelectrocnics and ASM International all finished with impressive gains as global semiconductor sell-off came to an end.
Shares in Swiss pharmaceutical firm Novartis gained as its second-quarter results beat expectations. The company returned to growth, with net sales rising 1% at constant FX to $14.41bn, topping the $13.96bn consensus estimate.
Elsewhere in the pharma sector, Danish outfit Novo Nordisk fell after launching legal action against US rival Eli Lilly & Co, accusing it of using "misleading" and "deceptive" advertising for its weight-loss drugs.
London-listed outsourcing and energy services firm Mitie rocketed nearly 40% as it agreed to be bought by rival OCS Group in a £3.1bn deal.
On the downside, Boliden slid as the Swedish metals company's second-quarter results disappointed, while shares of Austria's Wienerberger fell sharply after a Q2 update.
Swiss private banking and financial firm Julius Baer slumped despite saying that profits had more than doubled in the first half of the year.