Source: Sharecast
The pan-regional Stoxx 600 index closed up 0.4% at 638.65, Germany’s DAX rose 0.6% to 25,408.64 and France’s CAC 40 was flat at 8,077.80. Brent crude was down 0.2% at $106.42 a barrel and West Texas Intermediate was 0.6% lower at $94.09
US and Iranian negotiators in New York were reportedly exploring a phased path out of war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran.
Dan Coatsworth, head of markets at AJ Bell, said: "Government bond yields eased back a touch after yesterday’s shock session where the US 30-year Treasury hit its highest level since 2004.
"A seemingly amicable meeting between Donald Trump and Xi Jinping was taken as a win, given the fragile relationship between the US and China in recent years. The fact the two leaders were able to meet without any uproar is significant from a geopolitical perspective.
"Xi saying that China and the US must ‘coexist in peace’ was positive, yet some might argue the whole event was more style over substance. Those hoping for progress on matters relating to AI, trade, Taiwan and Iran are still sitting on the edge of their seat, so far unfulfilled."
In economic news, consumer sentiment across Germany suffered a "significant setback" this month, according to the NIM Consumer Climate survey powered by GfK, as rising energy prices dampened income expectations.
The forward-looking consumer climate indicator for October fell 3.8 points to -30.6 points, GfK said. Analysts had expected a smaller decline to -27.4 from a revised -26.8 the month before, with the index reaching its lowest level since May.
The income expectations indicator dropped sharply, by 16.7 points to -15.0, falling to its lowest since April shortly before the introduction of the fuel rebate - a tax-free relief bonus and a fuel discount for May and June.
"The majority of households expect high energy prices to reduce their purchasing power," said Rolf Bürkl, head of consumer climate at NIM. "As a result, they are more sceptical about their income expectations for the next 12 months."
On the equities front, oil majors fell in line with the slightly weaker oil price, with Aker BP, Galp, Equinor and Var Energi all lower.
Elsewhere, Finland’s Konecranes surged as it launched a €100m share buyback programme and upgraded its financial targets.