Steady European Markets Amid Key U.S.-Iran Talks

European shares maintained their stability on Tuesday as key U.S.-Iran bilateral talks unfolded, reflecting a cautious tone across global markets. Investors kept a close watch on potential AI disruptions effecting traditional business models.

The pan-European index steadied at 819.22 points by 0819 GMT, largely in the black; geopolitics set the mood with indirect nuclear talks between the U.S. and Iran scheduled in Geneva, while U.S.-mediated Ukraine-Russia peace negotiations on territorial disputes were also on the table.

In this geopolitically infused environment, defence stocks fell by 1.2% as easing tensions suggest reduced immediate demand for military services. Investor nerves calmed following volatile weeks, especially as fears over AI impacts on traditional profit margins receded. Meanwhile, UK's InterContinental Hotels gained 1.1% after outperforming expectations, whereas miner Antofagasta experienced a 3.2% share drop amid lower copper prices.