Europe midday: Shares extend gains, oil slips

(Sharecast News) - European shares extended gains on Tuesday as investors eyed separate talks between the US and Iran via mediators aimed at establishing a truce in their seven month war.

The pan-regional Stoxx 600 index was up 0.57% to 642 at 1130 GMT with all major regional bourses higher.

US and Iranian officials reportedly held separate talks with mediators on Monday despite President Donald Trump's rejection of a truce plan that would reopen the Strait of Hormuz.

Iranian Foreign Minister Abbas Araghchi met Qatari mediators in New York. "We talked about ideas and how to find solutions to fulfil Iran's conditions," he said.

Trump told reporters on Monday that US officials had spoken separately with mediators but gave no further details.

Brent crude slipped to $105 a barrel, while West Texas Intermediate fell to $92 as tensions between the US and Iran persisted, fuelling energy supply fears as the northern hemisphere winter approaches.

"It's another day, but the same story is unfolding: oil prices continue to push higher, yields rise as investors factor in expectations of higher inflation, hence higher central bank rates, and the latter is weighing on equity valuations in the absence of major news and data," said Swissquote Bank analyst Ipek Ozkardeskaya.

Australia's Reserve Bank on Tuesday lifted its cash rate by 25 basis points to 4.6%, its fourth increase of 2026 and the highest level in 15 years. The board said the decision was unanimous and signalled it was prepared to tighten policy further if needed to return inflation to target.

Consumer price inflation is currently 3.5%, above the RBA's 2-3% band. Policymakers said recent data had been stronger than expected and that financial conditions needed to remain restrictive to ensure price pressures ease over time.

In equity news, shares in Lindt & Spruengli fell as the chocolate maker cut its 2026 organic growth forecast for the second time this year, citing subdued consumer sentiment and rising price sensitivity that together with a European heatwave hurt demand.

Julius Baer jumped after Swiss financial regulator FINMA said it had concluded enforcement proceedings against the bank, lifting or relaxing restrictive measures against it.

Semiconductor related stocks names were among the top performers after a report that Anthropic's public offering was expected to value the company at more than $2trln.

Reporting by Frank Prenesti for Sharecast.com