European shares scale record peak on earnings, US-Iran optimism

Aug 6 (Reuters) - European shares ‌rose to ​a ​record high on Thursday as investors assessed prospects of a U.S.-Iran peace deal and progress toward reopening ‌the Strait of Hormuz, while also digesting a slew ⁠of corporate earnings reports.

The pan-European STOXX 600 index was up 0.4% ‌at 660, as of 0718 ‌GMT. The benchmark index closed at an all-time high in the previous two sessions.

A senior Iranian source and two ​regional officials told Reuters that a proposed deal between Iran and Oman to help end five months of war ⁠would give Tehran control over ships entering the Gulf through the Strait of Hormuz, ​one of the biggest concessions yet to Iran.

Corporate results remained the primary focus. Analysts have steadily ​upgraded profit forecasts during the reporting ‌season, with second-quarter STOXX 600 earnings now expected to rise nearly 21%, according to LSEG-compiled data, ⁠compared with growth expectations of around 12.5% in early May.

Shares of Deutsche Telekom rose 5.5% after the German telecom operator expanded its ⁠2026 share buyback programme by €3 billion ($3.5 billion) to up to €5 billion. The regional ​telecom sector gained 1.6%.

Food and beverages sector edged 1% higher, with Glanbia up 8.4% after the Irish nutrition solutions provider's half-year revenue grew ‌7% year-on-year.

Investors shrugged off a pullback in global technology stocks following a recent AI-driven rally. The ‌STOXX 600 technology sector was up 0.1%.

Later in the session, ⁠investors will watch euro ‌zone retail sales data ​for further clues on the strength of consumer spending.

(Reporting by Tharuniyaa Lakshmi in Benglauru; Editing by Sherry ‌Jacob-Phillips)

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