Europe midday: Shares climb into green on Middle East peace hopes

(Sharecast News) - European shares made gains by midday on Friday as investors eyed the truce between Israel and Lebanon and a possible second round of peace talks between the US and Iran.

The Stoxx 600 index was up 0.11% to 617 at 1150 BST while Germany's DAX increased by 0.22%, France's CAC 40 gained 0.30% and Italy's MIB rose by 0.64%.

"Events in the Middle East remain the key market driver, and President Trump's overnight comments on the potential for further peace talks between the US and Iran could boost equity markets today," said Derren Nathan, head of equity research at Hargreaves Lansdown.

"A ceasefire between Israel and Iranian proxy Hezbollah after Israeli/Lebanese talks in Washington provides further hope for de-escalation."

In economic news, shares in Alstom tanked by a third after the French train maker pulled its three-year cash flow forecast overnight.

Shares in UK utilities were down after British Finance Minister Rachel Reeves said she was looking at ways to delink electricity and gas prices. Centrica and SSE were both lower on the news.

German medical packaging maker Gerresheimer whipsawed after a report by the Reuters news outlet that the company had rejected a takeover bid from its US rival Silgan. The stock was down 5.4% on the news before paring losses and swinging into positive territory.

Reporting by Frank Prenesti for Sharecast.com