European equity markets posted modest gains on Thursday, supported by optimism that upcoming discussions between Iran and the United States could help ease tensions in the Middle East.
Reports suggest both sides are considering extending the current ceasefire by an additional two weeks to allow more time for negotiations.
Investors also reacted to a fresh wave of corporate earnings releases and newly published economic data across the region.
France’s CAC 40 rose 0.6%, while both the UK’s FTSE 100 and Germany’s DAX advanced by 0.7%.
In Frankfurt, Zalando climbed 3.2%, while SAP added around 2.3% and Brenntag gained nearly 2%. Beiersdorf, MTU Aero Engines and Heidelberg Materials also moved higher, rising between 1% and 1.3%.
On the downside, Qiagen, Merck, Deutsche Telekom, Mercedes-Benz, Daimler Truck Holding, BMW and Volkswagen declined between 0.5% and 1.6%.
In Paris, Dassault Systèmes gained 2.2%. Capgemini, Teleperformance, Saint-Gobain, Airbus, Publicis Groupe and Michelin rose between 1.2% and 2%.
Kering slipped 1.7%, while L’Oréal, ArcelorMittal, TotalEnergies and Engie also traded lower.
In London, Entain surged 7.5% after reaffirming its revenue outlook. Halma, B&M European Value Retail, Vistry Group, Frasers Group, JD Sports Fashion, Pershing Square Holdings, Rightmove and Persimmon posted gains of between 2% and 3.5%.
Tesco also jumped following strong sales and profit growth, alongside the announcement of a £500 million share buyback.
EasyJet fell about 5% amid ongoing uncertainty linked to the Middle East situation. Airtel Africa, Convatec Group, Unite Group, Vodafone and Antofagasta declined between 1.6% and 2%.
On the economic front, figures from the Office for National Statistics showed UK GDP expanded by 0.5% in February, exceeding the 0.1% growth recorded in January.
Economists had expected growth to remain at 0.1%. On an annual basis, the economy grew by 1% in February.
From a sector perspective, services—the largest part of the economy—rose 0.5%, while construction output increased by 1%.
Industrial production grew 0.5%, following declines of 0.1% in January and 0.4% in December. Manufacturing output, however, slipped 0.1%, reversing January’s 0.2% increase.
Year on year, industrial production fell 0.4%, while manufacturing output declined 0.5% in February.
Meanwhile, final data from Eurostat showed eurozone inflation rose more than initially estimated in March, reaching its highest level since mid-2024.
The harmonised consumer price index increased 2.6% year on year, revised up from an initial estimate of 2.5%, and compared with 1.9% growth in February.
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