European shares advance on Mideast peace deal optimism; earnings on watch

European shares rose on Wednesday, with oil prices dropping and investor optimism rising after U.S. President Donald Trump cited "great progress" toward a comprehensive peace agreement with Iran.

The pan-European STOXX 600 .STOXX advanced 1% to 615.62 points, as of 0703 GMT, marking a second day of gains. Major regional bourses were also higher, with London's FTSE 100 .FTSE and Spain's IBEX 35 .IBEX both up over 1% each.

Energy-dependent Europe has lagged major global markets that have hit record highs driven by artificial intelligence-led optimism.

Novo Nordisk NOVOb.CO gained almost 7% after the Wegovy-maker reported first-quarter revenue and adjusted operating profit above expectations, slightly raising its full-year outlook.

Norwegian energy group Equinor EQNR.OL fell 5% and German carmaker BMW's BMWG.DE shares added 4.6% after posting their quarterly results.

-Twesha Dikshit/Reuters