Europe open: Stocks nudge up as oil prices ease

(Sharecast News) - European stocks nudged a touch higher in early trade on Tuesday as oil prices fell amid reports of ongoing diplomatic efforts between the US and Iran.

At 0905 BST, the benchmark Stoxx 600 index, Germany's DAX and France's CAC 40 were all 0.1% firmer. Meanwhile, Brent crude was down 0.9% at $88.40 a barrel and West Texas Intermediate was 0.7% lower at $82.67.

Oil prices eased back after it was reported that a senior Iranian official said mediators had proposed a 10-day ceasefire to revive an interim US-Iran agreement, and the removal of restrictions in the Strait of Hormuz. However, news that Yemen's Iranian-backed Houthis have introduced a naval blockade against Saudi Arabia was also in focus.

Susannah Streeter, chief investment strategist at Wealth Club, said: "A little more hope appears to be creeping in about the potential for negotiations to resume in the Middle East and act as a circuit breaker to escalating violence.

"Amid rumours that talks could restart this week, Brent crude has shifted a little lower to around $88 a barrel, and some optimism has returned to financial markets. Stocks in Asia largely lifted, with Japan's Nikkei clawing back some of its losses."

On the corporate front, Swiss pharmaceutical firm Novartis gained as its second-quarter results beat expectations.

London-listed outsourcing and energy services firm Mitie rocketed as it agreed to be bought by rival OCS Group in a �3.1bn deal.

On the downside, Boliden slid as the Swedish metals company's second-quarter results disappointed, while shares of Austria's Wienerberger fell sharply after a Q2 update.

Swiss private banking and financial firm Julius Baer slumped despite saying that profits had more than doubled in the first half of the year.