European shares climbed towards a record high on Tuesday 10 November 2026, as falling oil prices and easing tensions in the Middle East lifted investor sentiment across the region.

The pan-European STOXX 600 index gained 0.9 per cent to 662.54 by 0805 GMT, trading within 1 per cent of its record high, last reached in early August. Benchmark indexes in Germany, France and Italy were each up about 1 per cent.

Oil slide lifts the mood

The rally was driven by a further fall in crude oil. Brent crude dropped more than 2 per cent to around $90 a barrel on Tuesday, after sliding almost 6 per cent in the previous session to its lowest level since late August.

Oil prices have retreated since US President Donald Trump said further US strikes on Iran were “highly unlikely”, while describing the war as effectively over. He has, however, kept the US naval blockade of Iran in place.

Lower oil prices offer relief to Europe’s inflation outlook, given the region’s reliance on imported energy. Investors are betting that easing energy costs will reduce pressure for higher interest rates.

Germany and France lead gains

Germany’s DAX rose about 1.2 per cent at the open, France’s CAC 40 gained about 1.2 per cent, and the Euro Stoxx 50 was up about 1.1 per cent. London’s FTSE 100 also opened higher, extending Monday’s 1 per cent rise to 10,782.87.

Monday’s rally was broad-based. The STOXX 600 advanced 1.3 per cent, the DAX surged 1.7 per cent and the CAC 40 climbed 1.2 per cent, as technology shares recovered and declining oil prices supported risk appetite.

Wall Street also posted its best session since April on Monday, with the S&P 500 rising 2.4 per cent to 7,549.94 and the Nasdaq Composite gaining 2.7 per cent to 25,253.14.

US inflation data still to come

The rally faces a test later on Tuesday, when the US publishes October consumer price data at 13:30 UK time. It is the last inflation reading before the Federal Reserve meets on 9 December, and a hotter-than-expected figure could unsettle markets.

Headline inflation is expected to slow to 0.3 per cent month on month in October, down from 0.6 per cent in September, according to market forecasts.

For now, European investors are enjoying the relief. With the STOXX 600 hovering near its all-time high, the question is whether the easing in oil prices and Middle East tensions can carry the rally through the US inflation test.