Europe midday: Stocks extend gains on peace hopes

(Sharecast News) - European stocks had extended gains by midday on Friday as investors grew increasingly hopeful of a peace deal between the US and Iran.

The benchmark Stoxx 600 index was up 0.6%, while Germany's DAX was 0.2% higher and France's CAC 40 was up 0.8%. At the same time, Brent crude was 2% lower at $91.80 a barrel.

Late on Thursday, Axios reported that the US and Iran have reached an agreement on a 60-day memorandum of understanding to extend the ceasefire and launch negotiations on Tehran's nuclear programme.

Citing two US officials and a regional source involved in the mediation efforts, Axios said Trump has yet to give his final approval, while Iran has also not confirmed its acceptance.

Speaking to reporters at Joint Base Andrews on Thursday, Vice President JD Vance said the US was "very close" to finalising an agreement with Iran but that there were still a few sticking points, such as "a couple of issues on the nuclear stuff, the highly enriched stockpile and also the question of enrichment".

Russ Mould, investment director at AJ Bell, said: "Reports that Tehran and Washington have agreed a framework for a 60-day extension to the ceasefire, which would facilitate the reopening of the Strait of Hormuz and enable fresh negotiations over Iran's nuclear programme, have engendered some positivity.

"But there remain conflicting noises about whether the deal will get sign-off from President Trump.

"Oil prices have retreated sharply, government bond yields are in check, while Asian stocks and European shares enjoyed decent gains."

There were no major European corporate earnings out but Ocado shot up 11% after saying it has agreed to enter a partnership with Asda to develop the latter's online business across the UK with the Ocado Smart Platform.

The focus of the partnership will be to quickly replace and upgrade Asda's existing ecommerce infrastructure, with Ocado's solutions to be rolled out across both stores and dark stores from 2027.

Elsewhere, German ticket company CTS ⁠Eventim surged 11% after well-received first-quarter results.