Europe midday: Shares hold gains as US-Iran talks set to start

(Sharecast News) - European shares were higher on Tuesday as investors eyed talks in Geneva between Iran and the US on a nuclear deal and digested unemployment and wage data from the UK.

The pan-regional Stoxx 600 index was up 0.19 % to 619.68 with all major bourses higher. US President Donald Trump said he would be "indirectly" involved in the discussions, due to start on Tuesday.

"I don't think they want the consequences of not making a deal," Trump told reporters, referring to last summer's US military strikes on Iranian nuclear facilities.

The US has also reportedly sent the USS Gerald R Ford, the world's largest warship, to the Middle East as part of a growing military buildup since Tehran's brutal crackdown on anti-regime protests that has reportedly resulted in thousands being killed.

Crude oil prices were slightly higher on hopes the two sides could reach a deal on Iran's nuclear programme. Brent crude was up 0.54% to $69 a barrel, while West Texas intermediate gained 1.92% to $64.

On the economics front, German inflation rose slightly to 2.1% last month on the back of higher food prices, federal statistics office Destatis said on Tuesday, confirming preliminary data.

Meanwhile, investor morale in Germany unexpectedly eased in February, pulling back from a four-year high, according to the Centre for European Economic Research (ZEW).

The ZEW Economic Sentiment Index, which tracks confidence levels among analysts and institutional investors, fell to 58.3 this month, coming in well below the consensus forecast of 65.

According to ZEW, expectations about Germany's economic situation "stabilised" this month after the index hit the highest level since July 2021 in January at 59.6.

In the UK, the unemployment rate hit its highest level in nearly five years in December, while earnings growth eased, boosting hopes of an interest rate cut by the Bank of England.

The jobless rate nudged up to 5.2% in the three months to December from 5.1% in the previous three months, hitting the highest level since the first quarter of 2021. Economists were expecting the rate to be unchanged.

In equities news, BHP jumped as it reported a sharp jump in first-half earnings and lifted its dividend by 46% as its pivot towards copper production from iron ore paid off.

InterContinental Hotels gained as it posted a rise in full-year operating profit and revenue and announced a new $950m share buyback, amid strength in the EMEEA region.

Shares in copper miner Antofagasta were lower despite reporting strong full-year topline growth and delivering record underlying earnings, driven by increased commodity prices and higher sales volumes.

Plus500 fell after the company's chief executive, chief financial officer and chief marketing officer sold 1.5m shares, or 2.1%, to Goldman Sachs.

Market distribution specialist DKSH surged after increasing full-year profits.

Reporting by Frank Prenesti for Sharecast.com