European Stocks Rise as UK GDP Surges and Iran Peace Talks Lift Market Sentiment

European stocks rose modestly on Thursday as investors reacted to stronger-than-expected UK economic growth and growing optimism around diplomatic efforts linked to Iran peace negotiations. The positive tone in global markets also followed gains in Asia and a record-setting session in the United States, helping sustain risk appetite across Europe.

The pan-European Stoxx 600 index was up about 0.25% shortly after the opening bell, with most major regional markets edging higher. The UK’s FTSE 100, France’s CAC 40, Germany’s DAX, and Italy’s FTSE MIB all posted small gains as traders digested fresh economic data and geopolitical developments.

A key driver of sentiment came from the United Kingdom, where official figures showed the economy grew by 0.5% in February—far above the 0.1% forecast. The stronger reading suggested underlying resilience in the UK economy, even as analysts warned that escalating conflict involving Iran could weigh on future growth and fuel uncertainty in global markets.

Geopolitics remained in sharp focus, with investors closely watching developments in US–Iran relations. Market sentiment improved after comments from US President Donald Trump suggesting the conflict could be nearing resolution, alongside reports of tentative progress toward extending a fragile ceasefire agreement. However, officials have signaled that no formal extension has yet been confirmed, keeping markets cautious.

Sector performance across Europe was mixed, with miners and technology stocks leading gains while telecoms lagged. Attention is now shifting to upcoming eurozone inflation data and corporate earnings from major firms including Tesco, Vinci, Aker, Pernod Ricard, and Rentokil Initial, which could shape market direction in the days ahead.

source: cnbc