Europe open: Stoxx up on peace hopes; Defence stocks slide

(Sharecast News) - European shares opened higher on Tuesday as traders reacted cautiously to hopes of a Russia-Ukraine peace deal after talks in Washington between US President Donald Trump and Ukraine leader Volodymyr Zelenskyy. The pan-regional Stoxx 600 rose 0.14% to 554 at 0806 BST with all major bourses following suit.

Trump and European leaders also present in Washington claimed Russia leader Vladimir Putin had agreed to meet face-to-face with Zelenskyy to thrash out a peace deal, although there was no confirmation from Moscow.

A day of talks saw Trump rule out a ceasefire and repeat his false claim he had stopped six wars this year alone, while Zelenskyy and the leaders of France, Germany and UK pressed for US-backed security guarantees as part of any long-term agreement.

"The next step is to bring Putin to the negotiating table and find a durable solution. Peace has rarely felt so close," said Swissquote Bank analyst Ipek Ozkardeskaya.

"Crude oil opened lower this week after the first Trump-Putin meeting went smoothly, then rebounded ahead of the Trump-Zelensky summit on news of fresh Russian and Ukrainian attacks - including a strike on a Russian oil pipeline system. This morning, oil is back under pressure, trading below $63bp, as optimism for a lasting truce builds."

The talk of peace hit defence stocks, with hares of Renk Group, Leonardo, Dassault, Thales, Qinetiq, Rheinmetall and Hensoldt all lower.

#Reporting by Frank Prenesti for Sharecast.com