European shares open higher as US-Iran diplomacy hopes lift sentiment

Renewed optimism over diplomatic progress between Washington and Tehran is driving early gains across European equity markets, with the STOXX 600 up 0.4%.

By Handelsavisen Newsroom · Automated 2026-08-03 07:41 UTC · 1 min read

European equities opened the trading week on a positive note, with the pan-European STOXX 600 index rising 0.4% to 651.88.

The broad-based advance reflects a shift in investor sentiment as markets digest reports of renewed diplomatic engagement between the United States and Iran.

The rally follows comments from U.S. President Donald Trump indicating that talks with Tehran are imminent.

This development has helped ease geopolitical tensions that have weighed on global risk appetite in recent weeks.

Futures data prior to the open suggested strong momentum, with France's Cac 40 expected to rise 0.9% and Germany's Dax also tracking higher.

The positive start in Europe mirrors moves in Asian markets, which opened the week higher on the same diplomatic news.