Europe open: Shares up as investors bet on latest Iran war peace moves

(Sharecast News) - European shares opened higher on Tuesday as investors shrugged off jitters about rising inflation and energy supply shortages caused by the Iran war and pinned their hopes on the latest peace negotiations between Washington and Tehran.

The pan-regional Stoxx 600 index was up 0.33% to 612 at 0806 BST. Germany's DAX gained 0.73%, the UK's FTSE 100 rose 0.48% and France's CAC 40 increased by 0.34%.

US President Donald Trump on Monday claimed that he had called off an attack on Iran scheduled for Tuesday at the behest of Qatar, Saudi Arabia and the United Arab Emirates.

"A Deal will be made, which will be very acceptable to the United States of America, as well as all Countries in the Middle East, and beyond. This Deal will include, importantly, NO NUCLEAR WEAPONS FOR IRAN!," Trump said on social media.

Oil prices slipped on the news, with Brent Crude currently hovering at around $110, but still well above levels before Trump and Israel started their war of choice at the end of February with still no sign of any resolution to the Hormuz strait blockade.

In economic news, Britain's unemployment rate rose unexpectedly to 5% in the three months to March, up from 4.9% in February, as employers cut back on hiring.

"The important point for markets is that businesses appear to be responding to higher costs by cutting headcount, not by pushing wages materially higher to compensate workers," said Hargreaves Lansdown analyst Matt Britzman.

"That should help keep the coming inflation spike contained to a short-term energy shock rather than the start of a wage-price spiral, giving the Bank of England a little more room to sit tight rather than rush into further rate hikes."

In equity news shares in Evolution Gaming jumped as the company announced a €2bn share buyback.

Reporting by Frank Prenesti for Sharecast.com