The European stock markets were trending higher in Tuesday trading as investors vacillated back to optimism regarding a possible end to the Middle East war with a resumption of US-Iran peace talks.

The Stoxx Europe was gaining 0.9%, Germany's DAX increased 1.3%, the FTSE 100 was edging 0.25% higher, France's CAC rose 1.1%, and the Swiss Market Index was up 0.9%.

The International Monetary Fund cut its GDP growth forecast for the euro area to 1.1% in 2026 from 1.4% in 2025, which it attributed to global economic disruption caused by the outbreak of war in the Middle East.

Spain is expected to see the biggest drop in growth, falling to 2.1% from 2.8% in 2025, while GDP growth in the UK is forecast to drop to 0.8% from 1.3%. Germany is the only European country expected to see GDP growth in 2026, with the IMF forecasting a rise to 0.8% from 0.2%. GDP growth in France and Italy are forecast to remain unchanged at 0.9% and 0.5% respectively.

Novo Nordisk has received the Medicines and Healthcare products Regulatory Agency approval for a new single-dose 7.2 mg of Wegovy to treat adults with obesity, the UK regulator said Tuesday.

The new dose is for patients who have a body mass index of at least 30 kg/m2, according to the MHRA. The new dose is administered through one injection.

Shares of the Danish pharmaceutical company gained 3.3% in Copenhagen.

BHP Group is set to have its restrictions lifted by China Mineral Resources Group, which has told several steel mills in the country that they are allowed to buy some BHP cargoes, multiple media outlets reported late Monday, citing unnamed sources familiar with the matter.

Officials from China Mineral notified domestic steel mills that they can restart bidding for some BHP cargoes denominated in US dollars from April 14, Bloomberg reported.

BHP declined MT Newswires' request for comment on commercial negotiations, while China Mineral Resources Group did not immediately respond.

Shares of the mining company were up 1.4% in London.

Shell is in late-stage discussions to sell its South African retail fuel network to Abu Dhabi National Oil, Bloomberg reported Tuesday, citing people with knowledge of the matter.

The prospective $1 billion transaction includes 600 fueling locations and would secure a 10% regional market share for the buyer, the media outlet reported.

A final agreement could be reached during the current quarter after earlier acquisition negotiations with Gunvor Group collapsed, according to the publication.

Shell and Abu Dhabi National Oil did not immediately respond to MT Newswires' request for comment.

Shares of Shell were falling 2.7% in London.

Barclays' US Consumer Bank and FIS (FIS) said Tuesday they signed a multi-year extension of their core banking partnership agreement to support the bank's retail deposits growth ambitions.

As part of the agreement, Barclays will deploy the FIS Profile service, a cloud-ready, high-performance core banking platform that manages deposits, accounts, and balances while delivering real-time, multi-currency processing, the companies said.

Shares of the British lender were up 1.8% in London.