US President Donald Trump speaks during a healthcare affordability event in the South Court Auditorium of The White House in Washington, DC, on May 18, 2026.
Kent Nishimura | AFP | Getty Images
LONDON — European stocks traded higher on Tuesday as investors assess the geopolitical landscape and developments in the Middle East.
The pan-European Stoxx 600 was up almost 0.7% by 1:00 p.m. in London (8:00 a.m. E.T.), with most regional sectors in positive territory, as major bourses in London, Paris, Frankfurt and Milan all notched gains.
The German government announced plans to re-privatize energy group Uniper, which was bailed out during the 2022 European energy crisis with a cost to the taxpayer of 13.5 billion euros ($15.71 billion).
The government, which owns a 99.12% stake in Uniper, on Tuesday announced its intention for the sale or a listing of the group in what could be one of the biggest European deals this year.
“We are now more stable, more resilient and more clearly positioned strategically. We have consistently aligned our business towards reliable earnings and have a strong balance sheet,” Uniper CEO Michael Lewis said on Tuesday.
The move sent Uniper shares some 4.8% higher in afternoon trade.
Elsewhere, defense stocks rallied after it was reported that Sweden will buy navy frigates from France in a move that will mark Sweden’s biggest military investment in decades. Swedish company Saab is being lined up to develop radar and weapons systems for the country’s naval capabilities.
Shares of Saab jumped 4.3% in afternoon dealmaking, while the regional Stoxx Aerospace and Defense index gained around 2.1%.
Earlier, U.S. President Donald Trump said in a Truth Social post on Monday that he’d told U.S. military leaders to call off a “scheduled attack of Iran tomorrow” after requests from the leaders 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 added.
The president cautioned that he has informed his military leaders “to be prepared to go forward with a full, large scale assault of Iran, on a moment’s notice, in the event that an acceptable Deal is not reached.”
Oil prices fell overnight following the statement. International Brent crude futures for July delivery were last seen 1.04% lower at $110.93 per barrel as of 1:00 p.m. London time. West Texas Intermediate futures for June delivery were down 0.26% at $108.38 per barrel.
In other geopolitical news, Russian President Vladimir Putin is arriving in Beijing on Tuesday for a two-day summit with Chinese President Xi Jinping, just days after Trump’s visit to China.
The summit, scheduled for May 19-20, marks the second time the Chinese and Russian leaders have met in the past year, as Beijing seeks to manage ties with Washington and Moscow.
Official data published Tuesday showed the U.K. unemployment rate rose to 5% in the three months to March, up from 4.9% in February.
Economists polled by Reuters had been expecting the unemployment rate to hold steady.
Jack Kennedy, a senior economist at Indeed, said the Iran war was expected to weigh heavily on growth in the U.K. in the coming quarters, further constraining hiring demand. He added that a volatile domestic political backdrop “adds uncertainty that businesses could do without.”
“For the Bank of England, the [March unemployment] figures will do little to resolve a divided Monetary Policy Committee,” he said. “A June rate hike remains on the table amid inflationary pressures from elevated global energy prices, but with monetary policy settings already restrictive, the committee needs to balance that against the significant risks of further labor market deterioration.”
The meeting of G7 finance ministers and central bankers also concludes in Paris on Tuesday. The meeting has been dominated by the Iran war and how to mitigate the global economic shock from the conflict.
French Finance Minister Roland Lescure, chairing the G7 meeting this week, told CNBC on Monday that it’s important to understand the impact of the crisis on growth, inflation and budget deficits before making decisions.
