Major European markets closed higher, aside from Paris, which slipped back slightly in late trading.
“European stock markets rebounded early Tuesday with some relief evident from the lack of any material increase in the economic pressure on Iran,” said Neil Wilson, investor strategist at Saxo UK.
Markets were also boosted by German data showing the country’s second-quarter growth was stronger than previously estimated.
Investors are looking ahead to earnings Wednesday from artificial intelligence pace setter Nvidia.
The chipmaker’s performance has become a key test of the AI boom, with concerns growing over whether the sector can match lofty expectations.
“The most actively traded stocks in the US right now are all the major AI names,” said Kathleen Brooks, research director at XTB trading group.
She added that Nvidia’s results “will be a key driver of price action, and potential volatility later this week”.
Investors are also looking to the annual Jackson Hole gathering of central bankers, economists and finance chiefs beginning Thursday, where Federal Reserve boss Kevin Warsh is due to speak.
His comments will be parsed for clues about monetary policy, with US inflation still stubbornly high and after Bessent said the Treasury would buy back more of its own bonds to push down borrowing costs after the 30-year yield hit a 19-year high.
