Europe midday: Shares pare gains as stagflation fears take hold

24th Mar 2026 11:32

(Sharecast News) - European shares trimmed gains on Tuesday as early optimism over potential peace talks between the US and Iran waned while a survey revealed fears of stagflation due to supply chain issues and rising prices.

The pan-regional Stoxx 600 index was up 0.30% to 578 at 1200 GMT with all major continental bourses higher.

Markets were hit by volatile trading on Monday after US President Donald Trump threatened to bomb Iranian power plants if the Strait of Hormuz was not reopened to shipping before changing his mind and claiming he had held "very good" talks with Tehran - sending stocks soaring and oil into retreat,

Benchmark Brent crude was up 2% to $102 a barrel. However, month-ahead gas on the Dutch exchange was down 6% to €53.20 per kilowatt hour, but still well above the €32 before the war started.

"According to President Donald Trump, preliminary truce talks have begun with Iran. According to Iran, he's living in la-la-land and the talks never happened. But the markets love hope, and the prospect of a ceasefire was enough to push Brent crude oil down 11% yesterday to below $100 a barrel for the first time in weeks," said Hargreaves Lansdown chief investment strategist Emma Wall.

"But the Iran denial, and a report that the UAE and Saudi Arabia are considering entering the war, has sent oil back up to $103. It's foreign-policy-by-soundbite, but it is President Trump's speciality."

Eurozone private sector output slowed sharply in March, a closely watched survey showed on Tuesday, as cost inflation soared and confidence waned following the outbreak of war in the Middle East.

The flash Eurozone PMI composite output index fell from 51.9 in January to 50.5, a 10-month low. Analysts had been expecting a more modest decline, to 51.

In equity news, shares in Puig jumped 16% after Estee Lauder and Spanish beauty group announced they were in talks regarding a potential merger.

UK housebuilder Bellway fell as the company reported lower interim profits.

Reporting by Frank Prenesti for Sharecast.com