Stocks in focus
Among energy stocks, French oil producer Total /zigman2/quotes/206172043/delayed FR:FP -0.31% rose 1.9%, while Royal Dutch Shell PLC /zigman2/quotes/206428183/delayed UK:RDSA -0.89% /zigman2/quotes/207682964/composite RDS.B -0.46% surged 3.4% and BP PLC /zigman2/quotes/207305210/composite BP -1.71% moved up by 3.9%.
Those stocks climbed as oil benchmarks rose by nearly 3% during the session.
Airbus SE shares /zigman2/quotes/208224336/delayed FR:AIR -1.12% fell 1.1% following Trump’s policy announcement.
“The U.S. decision to pull out of the Iran Nuclear Agreement means that U.S. licenses will no longer be granted to sell commercial aircraft to Iran. This will impact both Airbus and Boeing, who both announced deals with IranAir and Aseman in the wake of the agreement being signed in 2015,” said Robert Stallard, who covers global aerospace & defense at Vertical Research Partners, in a note.
Airbus is talking with United Airlines about replacing its old 767 fleet, according to a Reuters report on Tuesday , and that could offset the impact the sanctions would have on the Airbus’ deal with Iran, said Stallard. United is also talking to Boeing about replacing its aging 767 fleet, the report added.
On the earnings front, Siemens AG shares /zigman2/quotes/200873563/delayed DE:SIE -0.38% /zigman2/quotes/204584405/delayed SIEGY +0.10% leapt 3.9% after the industrial conglomerate posted a rise in quarterly profit.
Bper Banca SpA /zigman2/quotes/200216094/delayed IT:BPE +0.08% rallied 8.3%, topping the Stoxx 600, following first-quarter results from the Italian lender.
Meanwhile, Burberry Group PLC shares /zigman2/quotes/205386705/delayed UK:BRBY +3.27% /zigman2/quotes/203108786/delayed BURBY +2.93% tumbled 6.1% after Belgian holding company Groupe Bruxelles Lambert /zigman2/quotes/206932604/delayed BE:GBLB +0.86% said it sold its entire 6.6% stake in the British luxury goods maker. GBL, run by Belgian billionaire Albert Frère, said the move allows it to further rebalance its portfolio. GBL shares were down 1%.
Novartis AG /zigman2/quotes/203286410/delayed CH:NOVN -0.94% /zigman2/quotes/203243705/composite NVS -0.09% ended down by less than 0.1%. The Swiss drugmaker is among the companies reacting to reports that they made payments to a consulting company created by Michael Cohen, Trump’s personal lawyer. Novartis essentially said its deal with Cohen’s Essential Consultants has nothing to do with its current management team.
Will Trump's Iran Bet Pay Off?
After President Donald Trump's big gamble to pull the U.S. out of the Iran nuclear deal, the focus now shifts to Tehran, the Iranian people and America's allies. Gerald F. Seib explains the high stakes. Photo: Getty