European shares edged higher from multi-month lows on Tuesday as investors digested conflicting signals from the ongoing war in the Middle East, while concerns over the fallout from an energy shock kept gains in check. The pan-European STOXX 600 (.STOXX), opens new tab was up 0.3% at 578.45 points by 0803 GMT after the index hit its lowest level since November 2025 in the prior session. Get a daily digest of breaking business news straight to your inbox with the Reuters Business newsletter. Sign up here. Energy stocks (.SXEP), opens new tab extended gains, mirroring a rise in oil prices. Advertisement · Scroll to continue
Global equities staged a rebound from sharp losses after U.S. President Donald Trump delayed an offensive on Iran, saying positive talks were underway, a claim Tehran rejected as “worn-out psychological operations”. The Strait of Hormuz, which carries one-fifth of the global oil trade, has been largely shut, raising concerns of energy-driven inflation in Europe as it relies heavily on the route for its oil supplies. Among movers, SAP declined 2.2% after J.P. Morgan downgraded the German software maker to neutral from an overweight rating. Puig (PUIGb.MC), opens new tab jumped 16% after Estee Lauder (EL.N), opens new tab and Spanish beauty group announced they were in talks regarding a potential merger. Advertisement · Scroll to continue On the macro front, investors await euro zone flash PMI readings for March later in the day.
