European stocks rise to two-week high

The Stoxx 600 ended 0.24% higher at 643.47, its highest since 8 September

European stocks rose to a two-week high on Tuesday, helped by another fall in oil prices as supply concerns continued to ease in the Middle East.

The Stoxx 600 ended 0.24% higher at 643.47, its highest since 8 September, with moderate losses in London and Milan outweighed by gains in Frankfurt, Paris and Madrid.

Reports that Iran could re-open the Strait of Hormuz within a week helped to lower the price of crude, which dropped for the fifth straight day.

Brent was down 0.6% at $99.71 a barrel – it has not settled below the $100 level since 8 September – further dampened by reports that Saudi Arabia is preparing to restart its East‑West pipeline as early as this week.

After the return for risk appetite which saw the Nasdaq advance to a new record last night, there was a more measured feel to proceedings in Asia and Europe on Tuesday, said AJ Bell investment director Russ Mould.

For oil to resume its downward trend, signs of tangible diplomatic progress will need to come through sooner rather than later, Mould said.

In equity news, shares in Kingfisher climbed 10% in London as the European DIY retailer lifted full-year guidance after posting a jump in half-year profits.

Also in London, Smiths Group rose after the UK ⁠engineering firm beat full-year ‌operating profit estimates and launched a ​process to sell its US asbestos liability.

Swedish telecom equipment maker Ericsson declined after Morgan Stanley downgraded to ‘underweight’ from ‘equal-weight.

Germany’s Evonik rose as M&A speculation resurfaced on reports that BASF had considered a potential transaction involving the chemicals outfit earlier this year.