Europe open: Stoxx hits record again on hopes of Hormuz reopening

(Sharecast News) - European shares touched record highs again on Wednesday continuing their rally this week, with new Wall Street highs also boosting momentum on the back of optimism that the US and Iran could make some progress on peace talks.

After hitting a record high yesterday, the benchmark Stoxx 600 index was up 0.24% to 658 at 0840 BST having touched 660 earlier in the session. All major regional European bourses were higher.

US stock markets closed sharply higher on Tuesday, with both the Dow Jones Industrial Average and S&P 500 finishing at all-time highs on rising hopes of diplomatic progress in the Middle East.

"Hope has been rekindled that a quick solution can be found to the conflict in the Middle East," said AJ Bell head of financial analysis Danni Hewson.

The Dow surged 1.7% to a new closing high of 54,085.88, the S&P 500 jumped 1.8% to a record close of 7,736.52, while the Nasdaq soared 2.6% to 26,584.99, its highest in nearly two months.

Oil prices dropped after US Treasury Secretary Bessent claimed in an interview with CNBC that a final deal between the US and Iran to reopen the Strait of Hormuz could be reached as early as Wednesday.

Subsequent reports of a commercial vessel being struck by a projectile offshore Oman raised fears that obstacles likely still remained between Washington and Tehran.

Brent crude sat just below $80 a barrel, with West Texas Intermediate at around $76.

In equity news, Sandoz and Glencore surged after releasing results, while UK retailer Next also jumped after lifting guidance for the second time this fiscal year.

Novo Nordisk fell after results were posted yesterday.

Reporting by Frank Prenesti for Sharecast.com