European shares moved slightly higher on Tuesday after investors reacted positively to signs of easing geopolitical tensions between the United States and Iran.
Markets also assessed corporate developments, including Standard Chartered’s large-scale restructuring plans tied to artificial intelligence adoption.
The pan-European STOXX 600 index rose 0.2% to 611.22 points as of 0702 GMT.
However, the benchmark remained below levels seen before the recent conflict in the Middle East.
Investor sentiment improved after US President Donald Trump said there was now a very good chance of reaching a deal aimed at limiting Iran’s nuclear programme.
The comments came after Tehran reportedly presented a new peace proposal, leading the US to pause a planned attack against Iran.
Oil prices dropped as much as 2%, although crude remained above $100 per barrel.
Bond markets also steadied after experiencing sharp selloffs in recent trading sessions.
European equities lag global peers
Despite Tuesday’s gains, European equities have continued to underperform global markets.
Investors remain concerned about Europe’s dependence on oil imports, especially during periods of geopolitical instability.
Meanwhile, US and global markets have continued to benefit from optimism surrounding artificial intelligence and technology stocks.
The AI-driven rally is expected to face another major test on Wednesday when NVIDIA reports its quarterly earnings results.
The company remains the world’s most valuable listed firm and a key driver of recent gains in technology shares.
Standard Chartered outlines AI-led restructuring
Among individual movers, shares of Standard Chartered dipped 0.8% in early European trade after the lender announced plans to cut more than 7,000 jobs over the next four years.
The London-headquartered bank said it intends to reduce 15% of its corporate function roles by 2030 as it increases the use of artificial intelligence across operations.
Standard Chartered currently employs nearly 82,000 people globally.
The announcement makes Standard Chartered one of the first major international banks to formally outline large-scale workforce reductions linked directly to AI adoption.
The lender said the restructuring is part of broader efforts to streamline operations, improve efficiency, and strengthen profitability as financial institutions increasingly integrate advanced AI systems into their businesses.
Bank raises long-term profitability targets
Alongside its restructuring announcement, Standard Chartered also raised its shareholder return ambitions.
The bank said it now expects return on tangible equity to exceed 15% in 2028, more than three percentage points above its 2025 target. It also forecasts ROTE of around 18% by 2030, surpassing some analyst expectations.
The lender said its strategy would remain focused on higher-margin business areas, particularly affluent retail banking clients and financial institutions within its corporate and investment banking operations.
Standard Chartered also accelerated its target for attracting $200 billion in net new money to 2028, bringing forward its earlier 2029 goal.
During the first quarter, the bank reported record wealth-management revenue and its strongest inflows of new client money.
Elsewhere in European markets, shares of Vallourec fell 10.3% after ArcelorMittal sold secondary shares representing a 10% stake in the French steel tubes maker at a discount.
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