European Shares Hit Record Highs Amid Hormuz Agreement Hopes

European stock markets reached record highs on August 6, 2026, with the pan-European STOXX 600 index rising between 0.4% and 0.5%. Gains were seen across the German DAX, French CAC 40, and U.K. FTSE 100, driven by a combination of resilient corporate earnings and optimism regarding the reopening of the Strait of Hormuz.

Iran announced it is in the final stages of drafting a commercial shipping agreement with Oman to resolve a five-month conflict in the Middle East. Reports suggest the deal would grant Tehran control over ships entering the Gulf via the strait, though Iran denied that the United States participated in these negotiations.

Economic data further bolstered sentiment, as the Statistisches Bundesamt reported that German factory orders grew 3.1% in June, exceeding forecasts. Corporate performance was mixed: WPP saw a 23% surge and Deutsche Telekom rose 5.5% after expanding its share buyback programme by €3 billion. Glanbia shares jumped 8.4% following a 7% increase in first-half revenue. Conversely, Siemens shares fell 5% after the company missed profit expectations.

Investors remain focused on upcoming euro zone retail sales data to evaluate regional economic health and consumer spending.