March 24 (Reuters) - European shares edged higher from multi-month lows on Tuesday as investors digested conflicting signals from the ongoing war in the Middle East, while concerns over the fallout
European Shares Rebound as Investors Weigh Middle East Tensions and Oil Shock
Market Overview and Key Drivers
European Markets React to Geopolitical Uncertainty
March 24 (Reuters) - European shares edged higher from multi-month lows on Tuesday as investors digested conflicting signals from the ongoing war in the Middle East, while concerns over the fallout from an energy shock kept gains in check.
The pan-European STOXX 600 was up 0.3% at 578.45 points by 0803 GMT after the index hit its lowest level since November 2025 in the prior session.
Energy Sector and Oil Prices
Energy stocks extended gains, mirroring a rise in oil prices. [O/R]
Global Equities and Political Developments
Global equities staged a rebound from sharp losses after U.S. President Donald Trump delayed an offensive on Iran, saying positive talks were underway, a claim Tehran rejected as “worn-out psychological operations”.
Impact of Strait of Hormuz Disruption
The Strait of Hormuz, which carries one-fifth of the global oil trade, has been largely shut, raising concerns of energy-driven inflation in Europe as it relies heavily on the route for its oil supplies.
Notable Movers and Corporate News
SAP Downgrade
Among movers, SAP declined 2.2% after J.P. Morgan downgraded the German software maker to neutral from an overweight rating.
Puig and Estee Lauder Merger Talks
Puig jumped 16% after Estee Lauder and Spanish beauty group announced they were in talks regarding a potential merger.
Upcoming Economic Data
On the macro front, investors await euro zone flash PMI readings for March later in the day.
(Reporting by Avinash P in Bengaluru; Editing by Eileen Soreng)
