European Markets Surge Following Trump-Announced Iran-Israel Ceasefire

European shares rose over 1% after President Trump's ceasefire announcement between Iran and Israel. The STOXX 600 index gained 1.4%, bolstered by Germany's strong performance. Oil prices dropped as supply concerns eased, but travel and leisure stocks flourished. AstraZeneca shares increased with regulatory approval news.

European markets rallied on Tuesday, buoyed by U.S. President Donald Trump's declaration of a ceasefire between Iran and Israel, which ignited investor optimism and heightened risk appetite worldwide.

The pan-European STOXX 600 index surged 1.4% to 542.6 points, led by Germany's impressive gains of almost 2%. Israel's Prime Minister Benjamin Netanyahu corroborated Israel's acceptance of Trump's ceasefire proposal.

Trump's late Monday announcement confirmed that the ceasefire was underway, urging adherence by both nations. Oil prices decreased, reflecting eased supply worries, while revived investor sentiment drove gold prices lower. Travel stocks soared 4.3%, overshadowing the oil sector's loss. Focus is also on Federal Reserve Chair Jerome Powell's pending Congressional testimony.

(With inputs from agencies.)