European stocks closed up 0.43% Estée Lauder in talks to acquire Puig

Uncertain Iran situation pushed international oil prices higher on Tuesday, dampening market investment sentiment. U.S. tech stocks came under pressure, while European markets fluctuated and rebounded. The pan-European Stoxx 600 index closed up 0.43% at 579 points, after reaching a high of 0.69% intraday. The oil, natural gas, telecommunications, and chemical sectors led gains, while mining, industrial, and retail sectors lagged behind the broader market.

Rising oil prices dampen market sentiment

Estée Lauder, a cosmetics group, announced earlier that it is in negotiations with Spanish company Puig regarding a potential acquisition. Puig’s stock surged 13%, while Estée Lauder’s shares fell more than 11% at one point.

The UK FTSE 100 index closed at 9,965 points, up 0.72% or 71 points; Germany’s DAX index closed at 22,636 points, down slightly by 0.07% or 16 points; France’s CAC 40 index closed at 7,743 points, up 0.23% or 17 points; Italy’s FTSE MIB index closed at 43,369 points, gaining 0.42% or 179 points; Spain’s IBEX 35 index closed at 16,910 points, up 0.13% or 22 points.

U.S. President Trump stated on Monday that after “productive” talks with Iran, the conflict could de-escalate, which initially boosted market sentiment. However, Iran later denied substantive negotiations, and a report by The Wall Street Journal suggested that Persian Gulf allies might join attacks on Iran, causing market optimism to quickly fade.