EUROPEAN shares climbed more than 1% on Tuesday after U.S. President Donald Trump announced a ceasefire between Iran and Israel, boosting investor sentiment and risk appetite across global markets.
The pan-European STOXX 600 index was up 1.4% at 542.6 points, as of 0708 GMT. Other major regional indexes also traded higher, with Germany's benchmark leading gains with a nearly 2% jump.
Israeli Prime Minister Benjamin Netanyahu confirmed that Israel has agreed to Trump's proposal for a ceasefire with Iran.
Trump announced late on Monday that Iran and Israel had agreed to a ceasefire. Hours later, he confirmed it was now in effect and urged both countries to uphold the agreement.
Oil prices dropped to two-week lows as supply concerns eased, while the risk-on sentiment pushed gold prices to their lowest level in nearly two weeks.
The oil and gas sector lost 3.5%, while travel and leisure stocks surged 4.3%.
Shares of AstraZeneca gained 1.3% after the British drugmaker and its partner Daiichi Sankyo won approval from U.S. regulators for their precision drug Datroway to treat a type of lung cancer.
Investor attention is also on U.S. Federal Reserve Chair Jerome Powell's upcoming testimony before Congress later in the day.
