European markets advance as optimism grows over possible Iran agreement: DAX, CAC, FTSE100

Stocks gain after Trump signals potential diplomatic breakthrough

European equities traded higher on Tuesday after U.S. President Donald Trump said there was a “very good chance” that Washington could secure an agreement with Iran aimed at preventing Tehran from developing a nuclear weapon.

Investor sentiment was further supported by a nearly 2% decline in oil prices following Trump’s remarks, while bond markets stabilized after recent heavy selling pressure.

UK labour market data weighs on sterling

The British pound weakened after official figures showed the U.K. unemployment rate edged higher during the three months to March.

The unemployment rate rose to 5.0% in the January-to-March period from 4.9% in the prior three-month period.

The number of unemployed people increased to 1.806 million, compared with 1.780 million in the December-to-February period.

Major European indices move higher

Germany’s DAX Index gained 1.3%, France’s CAC 40 advanced 0.7%, and the FTSE 100 in the U.K. climbed 0.5%.

Corporate movers drive market gains

Shares in LSEG (LSE:LSEG) moved sharply higher after the London Stock Exchange operator announced an extension of its long-running technology partnership with Broadcom.

Dr. Martens (LSE:DOCS) also rallied strongly after the footwear company reported a better-than-expected 61% increase in full-year adjusted pre-tax profit.

Specialist distribution company Diploma Plc (LSE:DPLM) surged after posting strong half-year earnings and upgrading its full-year guidance.

Hilton Food (LSE:HFG) also recorded notable gains after reaffirming its outlook for full-year adjusted pre-tax profit.

Stellantis (BIT:STLAM) advanced after the automaker said production of its low-cost E-Car electric vehicle project is scheduled to begin in 2028.

Sanofi (EU:SAN) traded higher after the French pharmaceutical company said a clinical study showed its treatment for a rare disease delivered improved results in boosting a key lung protein among patients with a genetic lung condition.

Swedish technology company Lagercrantz (BIT:1LAGR) jumped following quarterly earnings that exceeded expectations.

Defense group Saab (BIT:1SAAB) also gained after Sweden announced plans to purchase four naval frigates from France’s Naval Group in a deal valued at approximately $4 billion.