European shares rose 0.3% on Tuesday, August 25, as investors reacted to softer-than-feared US sanctions against Iran and gains in defence stocks.
The pan-European STOXX 600 reached 656.57 points at 0907 GMT, according to Reuters market data. Oil prices extended declines as traders saw little immediate threat to global crude supplies from the latest US measures.
The Trump administration warned countries Monday to reduce business ties with Iran or risk secondary sanctions. However, the US Treasury Department did not immediately impose penalties, Reuters reported.
Defence stocks led sector gains, rising 1.2%. Melrose Industries shares jumped 8.8% after the GKN Aerospace owner outlined plans to restore full production at its Garden Grove facility by September 28.
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The company also expects to pay up to USD 100 million to settle damage claims linked to a May incident involving an overheating chemical tank, according to Reuters.
Germany’s economy grew 0.3% in the second quarter from the previous quarter, exceeding an earlier 0.2% estimate. Stronger exports supported growth.
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Technology stocks gained 0.4% as investors awaited Nvidia’s Wednesday earnings report. Luxury shares fell 1.1%, making them the weakest sector, while automobile stocks declined 0.8%.
