European shares gain on softer US Iran sanctions, falling oil prices

European shares experienced an upward trend on Tuesday, driven by a softer-than-expected U.S. sanctions package against Iran and falling oil prices, according to Reuters. The STOXX 600 index saw a 0.35% increase, closing at 656.48 points, just 0.6% away from its record high earlier in the month. The healthcare sector led the gains, with Novo Nordisk and Zealand Pharma showing impressive gains of 2.9% and 5.6%, respectively.

Industrials also saw a rise of 1.1%, with Melrose Industries leading the pack by 10.4% after announcing a timeline for resuming full production at GKN Aerospace. Defense and aerospace shares also saw a marginal increase of 0.9%. Despite the positive market sentiment, experts warned that factors such as elevated oil prices, higher gas prices in the upcoming heating season, and potential trade tensions could pose risks to the German economy.