European Markets Rise

European stocks traded higher on Tuesday as investors assess the geopolitical landscape and developments in the Middle East. The pan-European Stoxx 600 was up almost 0.7% by 1:00 p.m. in London. The German government announced plans to re-privatize energy group Uniper, which was bailed out during the 2022 European energy crisis.

Uniper Privatization

The German government, which owns a 99.12% stake in Uniper, announced its intention for the sale or a listing of the group in what could be one of the biggest European deals this year. Uniper CEO Michael Lewis said, 'We are now more stable, more resilient and more clearly positioned strategically. We have consistently aligned our business towards reliable earnings and have a strong balance sheet.' The move sent Uniper shares some 4.8% higher in afternoon trade.

Geopolitical Developments

US President Donald Trump said in a Truth Social post on Monday that he'd told US military leaders to call off a 'scheduled attack of Iran tomorrow' after requests from the leaders of Qatar, Saudi Arabia, and the United Arab Emirates. Trump added that a deal will be made, which will be very acceptable to the United States of America, as well as all countries in the Middle East, and beyond. The president cautioned that he has informed his military leaders 'to be prepared to go forward with a full, large scale assault of Iran, on a moment's notice, in the event that an acceptable Deal is not reached.' Oil prices fell overnight following the statement.

UK Unemployment

Official data published Tuesday showed the UK unemployment rate rose to 5% in the three months to March, up from 4.9% in February. Economists polled by Reuters had been expecting the unemployment rate to hold steady. Jack Kennedy, a senior economist at Indeed, said the Iran war was expected to weigh heavily on growth in the UK in the coming quarters, further constraining hiring demand.

Key points

• The pan-European Stoxx 600 was up almost 0.7% by 1:00 p.m. in London.
• The German government announced plans to re-privatize energy group Uniper, which was bailed out during the 2022 European energy crisis with a cost to the taxpayer of 13.5 billion euros.
• Uniper CEO Michael Lewis said the company is now more stable, more resilient, and more clearly positioned strategically.
• US President Donald Trump said he'd told US military leaders to call off a 'scheduled attack of Iran tomorrow'.
• The UK unemployment rate rose to 5% in the three months to March, up from 4.9% in February.
• International Brent crude futures for July delivery were last seen 1.04% lower at $110.93 per barrel as of 1:00 p.m. London time.