(Reuters) -European shares climbed more than 1% on Tuesday after U.S. President Donald Trump announced a ceasefire between Iran and Israel, boosting investor sentiment and risk appetite across global markets.
The pan-European STOXX 600 index was up 1.4% at 542.6 points, as of 0708 GMT. Other major regional indexes also traded higher, with Germany’s benchmark leading gains with a nearly 2% jump.
Israeli Prime Minister Benjamin Netanyahu confirmed that Israel has agreed to Trump’s proposal for a ceasefire with Iran.
Trump announced late on Monday that Iran and Israel had agreed to a ceasefire. Hours later, he confirmed it was now in effect and urged both countries to uphold the agreement.
Oil prices dropped to two-week lows as supply concerns eased, while the risk-on sentiment pushed gold prices to their lowest level in nearly two weeks.
The oil and gas sector lost 3.5%, while travel and leisure stocks surged 4.3%.
Shares of AstraZeneca gained 1.3% after the British drugmaker and its partner Daiichi Sankyo won approval from U.S. regulators for their precision drug Datroway to treat a type of lung cancer.
Investor attention is also on U.S. Federal Reserve Chair Jerome Powell’s upcoming testimony before Congress later in the day.
(Reporting by Sukriti Gupta and Sanchayaita Roy in Bengaluru; Editing by Sherry Jacob-Phillips)
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