(Sharecast News) - European stocks rose on Tuesday, moving close to new highs after the Dow Jones ended at a record level on Wall Street overnight.
The pan-European Stoxx 600 rose 0.93% to 642.03.
Germany's DAX gained 1.43% to 24,979.25, France's CAC 40 advanced 0.44% to 8,403.99, and London's FTSE 100 edged up 0.12% to 10,497.12.
In commodities, Brent crude was last down 0.15% on ICE at $73.04 per barrel, while the NYMEX quote for West Texas Intermediate fell 1.29% to $69.84.
Axel Rudolph, chief technical analyst at IG, said the Dow had hit a record high as it benefited from Alphabet's inclusion as a constituent, while the Nasdaq 100 rallied further amid the SpaceX debut.
"Gold is on track for its eighth straight week and fourth consecutive month of falling prices amid a hawkish Fed and appreciating greenback, dropping by close to 30% from its January peak," he said.
"Meanwhile the yen sinks to a 40-year low - increasing the risk of Bank of Japan currency intervention - while the S&P 500 looks to be on track for its best quarter in six years amid the ongoing AI and chip boom while crude suffers its worst quarterly decline since 2020."
US markets advanced overnight, with the Dow Jones climbing above 52,000 for the first time as technology shares rebounded after a difficult week.
Investors were also watching the temporary easing of tensions between Washington and Tehran, and what the truce could mean for oil supplies from the Middle East.
The Dow's strong performance came after the US and Iran agreed on Sunday to stop attacks and allow commercial ships to pass freely through the Strait of Hormuz.
The deal followed a weekend of military exchanges that had threatened to derail efforts to end the conflict.
US president Donald Trump said the two countries were preparing to hold new talks in Qatar on Tuesday, although Iran did not immediately comment.
Inflation slows in Germany and France
On the economic front, German inflation slowed again in June, falling to its lowest level in four months as energy price growth eased.
Destatis said the annual rate of consumer price inflation declined to 2.3% from 2.6% in May, below expectations for 2.5% and marking the second consecutive fall after inflation reached a two-year high of 2.9% in April.
Energy price inflation slowed sharply to 3.4% from 6.6% in May and 10.1% in April as oil prices pulled back after the recent supply shock from the Iran war.
Food inflation was steady at 0.4%, while goods inflation eased to 1.7% from 2.2%. Services inflation remained unchanged at 3.1%, leaving core inflation flat at 2.5%.
Rudolph said German inflationary pressures had followed France and Italy in slowing to their lowest level since February, while US home price rises surpassed market expectations, job openings exceeded forecasts and Chinese factory activity also beat expectations.
German retail sales unexpectedly rose in May, increasing by the most in nearly a year.
Price-adjusted retail sales were up 1.1% on the month after a 0.4% fall in April, compared with expectations for a 0.1% decline.
Sales were 1.8% higher than a year earlier, against expectations for no annual growth.
Petrol station sales rose 3.5% month-on-month after fuel discounts introduced by the German government at the start of May, while food sales increased 1.1%, non-food sales rose 1.0%, and online and mail-order sales jumped 3.4%.
In France, inflation slowed more than expected in June.
Insee said consumer price inflation fell to 1.8% from 2.4% in May, below expectations for 2.1% and the lowest rate in three months.
Energy prices were still 11.2% higher than a year earlier, but that was down sharply from 16.6% in May.
Services inflation eased to 1.8% from 2.1% and food inflation slowed to 0.9% from 1.1%, while the decline in manufactured product prices accelerated.
Harmonised inflation fell to 2.0% from 2.8%, bringing it in line with the European Central Bank's target.
The UK economy grew 0.6% in the three months to March, in line with expectations and following revised growth of 0.1% in the final quarter of 2025.
The Office for National Statistics said all three main sectors expanded, with services making the largest contribution after growth of 0.8%.
Annual GDP growth for 2025 was revised down to 1.3% from 1.4%, following unrevised growth of 1.0% in 2024.
The data also showed that living standards fell, with real household disposable income per head down 0.8% in the first quarter after a 1.2% rise in the previous quarter.
UK shop price inflation was steady in June, according to the BRC-NIQ shop price index.
Overall shop price inflation was unchanged at 1.2% year-on-year, above the three-month average of 1.1%.
Food inflation eased to 2.4% from 2.7%, while non-food inflation rose to 0.6% from 0.5%.
BRC chief executive Helen Dickinson said food price growth had eased as strong competition and bumper crops helped keep prices of summer products such as strawberries and ice cream low.
However, she warned that retailers still faced cost pressures from higher National Insurance, packaging taxes and input costs linked to extreme weather and geopolitical tensions.
Genmab in the green, Teleperformance sinks
In equity markets, Genmab rose 4.45% after the Danish biotech company and partner AbbVie said a drug combination for treating lymphoma achieved its main goal in a late-stage clinical trial.
Teleperformance slumped 11.54%, with trading briefly halted after the shares fell sharply in early dealings.
The decline came after US rival Concentrix cut its full-year revenue outlook late on Monday, prompting concerns about demand for business services.
Reporting by Josh White for Sharecast.com.
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