Europe midday: Stoxx touches fresh high on corporate earnings

(Sharecast News) - European shares hit a fresh high on Tuesday on the back of a new record close for the Dow Jones in New York and optimism around a de-escalation of US-Iran tensions.

The pan-regional Stoxx 600 index was up 0.54% to 655 at 1152 BST with all major regional bourses higher. US stocks surged on Monday, with the Dow Jones Industrial Average climbing to a new record and the S&P 500 hitting a two-month high, as renewed hopes of a de-escalation in the Middle East sent oil prices firmly lower.

Brent crude nudged up towards $85 a barrel as there was still no sign of talks between the warring nations, despite claims from US President Donald Trump that the two sides would be meeting yesterday.

Higher oil prices due to Trump's war of choice on Iran have also led to a bonanza for oil companies with BP under fire on Tuesday after BP posted windfall second-quarter profits that more than doubled in the second quarter of this year to $5.73bn compared with the same period a year ago.

Ironically, Trump on Monday lashed out at the oil majors, saying they should "give some of that [profit] back to the public and they better cut the retail price, the consumer price".

Elsewhere, Bayer climbed after reporting a surprise jump in quarterly earnings.

BE Semiconductor jumped 5.6% following an upgrade to 'buy' from Berenberg.

Lufthansa slumped 10.6% after warning that operating profit could fall this year, with fuel costs more than halving its secondquarter earnings due to the US-Iran conflict. Zalando also tanked after narrowing its profit outlook and projecting weaker revenue growth for 2026.

Reporting by Frank Prenesti for Sharecast.com