European Shares Rise Amid Russia-Ukraine Peace Prospects

European shares edged higher on Tuesday following optimistic diplomatic signs of a potential peace agreement between Russia and Ukraine. This development came after a White House meeting involving discussions with European leaders, creating a cautiously positive investor sentiment.

The pan-European STOXX 600 index registered a 0.1% increase at 0708 GMT, with the majority of the regional markets showing gains. A significant component of the discussions was U.S. President Donald Trump's assurance to Ukraine's President Volodymyr Zelenskiy that Washington would support Ukraine's security arrangements in any imminent peace deal.

This assurance has led to expectations of formal guarantees within ten days. Additionally, German Chancellor Friedrich Merz revealed that a meeting between Zelenskiy and Russian President Vladimir Putin would occur in the upcoming two weeks, possibly followed by a three-way talk involving Trump. Amid these events, defense stocks suffered a decline, reflecting reduced demand as prospects of peace negotiations became more tangible.

(With inputs from agencies.)