European shares scale record peak on earnings, US-Iran optimism

European shares reached a record high on Thursday, driven by optimism over a potential US-Iran peace deal and strong corporate earnings reports, with the STOXX 600 index up 0.4%.

​European shares rose to a record high on Thursday as investors assessed prospects of a U.S.-Iran peace deal and ‌progress toward reopening the Strait of Hormuz, while also digesting a slew of corporate earnings reports.

The pan-European STOXX 600 index was up 0.4% at 660, as of 0718 GMT. The ‌benchmark index closed at an all-time high in the previous two sessions. A senior ‌Iranian source and two regional officials told Reuters that a proposed deal between Iran and Oman to help end five months of war would give Tehran control over ships entering the Gulf through the ⁠Strait ​of Hormuz, one ⁠of the biggest concessions yet to Iran.

Corporate results remained the primary focus. Analysts have steadily upgraded profit forecasts ⁠during the reporting season, with second-quarter STOXX 600 earnings now expected to rise nearly 21%, according ​to LSEG-compiled data, compared with growth expectations of around 12.5% in early May. Shares of ⁠Deutsche Telekom rose 5.5% after the German telecom operator expanded its 2026 share buyback programme by €3 billion ($3.5 ⁠billion) ​to up to €5 billion. The regional telecom sector gained 1.6%.

Food and beverages sector edged 1% higher, with Glanbia up 8.4% after the Irish nutrition solutions provider's half-year revenue ⁠grew 7% year-on-year. Investors shrugged off a pullback in global technology stocks following a recent ⁠AI-driven rally. The ⁠STOXX 600 technology sector was up 0.1%.

Later in the session, investors will watch euro zone retail sales data for further clues on ‌the strength ‌of consumer spending.