FX.co ★ European Stocks Move Higher

European equities advanced on Tuesday after a muted start, with the STOXX 50 up 0.8% and the STOXX 600 gaining 0.7%, as investors returned from the Easter break and continued to monitor developments in the Middle East. The conflict with Iran entered its sixth week, and President Trump warned that if no agreement is reached by his Tuesday deadline, the US military could target key Iranian infrastructure. He also said that talks with Iran are “going well” and stressed that reopening the strait remains “a very big priority.” Oil prices stayed volatile amid the ongoing tensions.

Financials, consumer cyclicals and consumer staples led the advance, while technology stocks underperformed. Luxury and consumer names traded higher, with LVMH up 1.7%, Nestlé 1.3%, Hermès 2% and Unilever 1.1%. In contrast, ASML Holding fell around 3% after US lawmakers introduced the MATCH Act, a bill designed to tighten existing restrictions on sales of semiconductor manufacturing equipment, aiming to further curb exports of chipmaking tools to China.