Source: Sharecast
The benchmark Stoxx 600 index closed 0.3% higher at 658.32, Germany’s DAX rose 0.3% to 26,347.45 and France’s CAC 40 ticked up 0.6% to 8,278.59. At the same time, Brent crude was down 0.5% at $92.09 a barrel and West Texas Intermediate was off 0.1% at $86.74.
Sentiment was boosted after Donald Trump said overnight that the war with Iran was "effectively over". Speaking to reporters at the White House, he said: "We're just keeping it the status quo.
"And we're doing that really at the behest of countries that are their neighbours."
He added: "At this point, taking the military action doesn’t seem to be a very necessary thing - but we’re locked and loaded, ready to go for any reason."
In a post on Truth Social, the US president said he had had an "excellent" talk with the Qatari Prime Minister and highlighted "positive momentum toward an end to this conflict".
Stocks surged in the first half of the session, but began to pare gains after data from the US Bureau of Labor Statistics showed the consumer price index rose 0.4% on a monthly basis in October, coming in above the 0.3% pencilled in by economists.
Food prices were up 0.5%, while energy prices rose 0.7% on the month. Core inflation - which strips out food and energy - rose 0.3%.
Kathleen Brooks, research director at XTB, said: "A hot CPI print for October has increased the chance of a rate hike from the Federal Reserve in December. There is now an 86% chance of a 25 basis points hike, and a 13% chance of a 50 bp hike after headline CPI rose by 0.4% last month, higher than the 0.3% expected by the market.
"This data comes after comments from FOMC member Chris Waller who said earlier this morning that he supports a 25bp hike next month, and may even vote for a 50 bp hike if the October inflation print suggests that inflation is becoming sticky.
"Both headline and core price growth was stronger than expected last month, which makes it hard for the Fed not to hike rates."
In equity markets, chip-related stocks Infineon and BE Semiconductor made gains. Germany’s Infineon was boosted as it posted a surge in fourth-quarter earnings and forecast further growth, as the chipmaker cashed in on the rapid build out of data centres.
The Frankfurt-listed business saw revenues jump 19% in the three months to September end, while the segment result - its core measure of adjusted operating profits - rocketed 56%. The robust end to the year meant annual revenues came in at €16.4bn, a 12% improvement on the previous year, while operating profit soared to €2.2bn from €1.5bn.
Henkel also rose after the German consumer goods maker lifted its full-year sales outlook. For 2026, it now expects organic sales growth of 3% to 4%, up from previous guidance of 1.5% to 3.5%. The group also said it now expects a mid-single-digit percentage increase in adjusted earnings per share at constant exchange rates, having previously forecast a low to high single-digit percentage increase.
Shares of Vodafone dipped as the telecoms giant upped full-year guidance despite a slide into the red and ongoing weakness in Germany. It now expects adjusted earnings before interest, tax, depreciation, amortisation and lease-related expenses to come in between €13.2bn and €13.4bn, and adjusted free cash flow of €2.8bn and €3bn. It had previously forecast for EBITDAaL of between €13bn and €13.3bn, and cash flow in the range of €2.6bn to €2.9bn.
BP, Shell and Repsol fell as oil prices eased.