Stoxx 600, FTSE, DAX, CAC 40

As global shares started selling off Monday, one bright spot of the equity market stood firm: Israel.

International stocks initially appeared unperturbed by the escalating conflict between Israel and Iran, largely rallying on Monday as the fighting entered its fourth day.

However, as military strikes continued on Tuesday, European and Asia-Pacific shares were more volatile, while U.S. stock futures also moved lower.

Bucking the global trend, stocks listed in Israel rallied. The Tel Aviv 125 index, last seen trading 1.1% higher, extended gains from the previous session that saw it reach a record high. The country’s Tel Aviv 35 index, home to the country’s largest listed firms, gained 1% — meaning it hit a fresh all-time high level on after previously reaching a new all-time high on Monday.

— Chloe Taylor

The announcement late Monday that the U.K. and U.S. have signed off on a previously-announced trade deal — accompanied by effusive praise of British Prime Minister Keir Starmer by U.S. President Donald Trump — has done little to lift market sentiment on Tuesday morning.

The FTSE 100 is down 0.5%, and firms that could stand to benefit from the slashed tariff rates on autos and zero tariffs on aerospace parts were little changed. Those included Aston Martin Lagonda, up 0.76%, Rolls-Royce, down 1.2%, with the impact largely already priced in.

Uncertainty meanwhile remains over what will be agreed for British steel and pharmaceutical firms, with rates not clarified in the announcement.

— Jenni Reid

We’re 30 minutes into Tuesday’s trading session, and stocks are broadly in negative territory.

The pan-European Stoxx 600 was last seen 0.8% lower, hitting its lowest level in more than three weeks. The index had gained 0.4% on Monday, as global markets appeared to shrug off the impact of the escalating conflict between Israel and Iran.

Germany’s DAX led losses among major regional bourses, down 1.6% in early trade. France’s CAC 40 was last seen 1.2% lower, with London’s FTSE 100 down by 0.7%.

— Chloe Taylor

In case you missed it, the U.S. and Britain signed an agreement on the sidelines of the G7 summit on Monday, lowering some tariffs on British exports to the United States while the two nations eye a trade deal.

Last month, the U.K. became the first country to agree a trade deal with Washington since U.S. President Donald Trump unveiled his full list of so-called reciprocal tariffs.

The deal signed on Monday reaffirmed preferential tariff rates on British autos and removed tariffs on the U.K.’s aerospace sector. Trump said on Monday that a tariff rate specifically for British steel and aluminum would be established “at a future time.”

Steel and aluminum imported from the U.K. is currently subject to 25% tariffs, half the 50% rate imposed on the rest of the world.

Speaking to reporters after the deal was signed with British Prime Minister Keir Starmer, Trump said “we signed it and it’s done” before touting the transatlantic relationship as “fantastic.”

“It’s a great deal for both, it’s going to produce a lot of jobs, a lot of income.”

“The U.K. is very well protected, you know why? Because I like them, that’s why,” Trump added.

— Chloe Taylor

Gold has claimed the safe haven crown. With spot prices surging 30% so far in 2025, bullion’s gains are outpacing that of other traditional safe havens such as the Japanese yen, Swiss franc, and U.S. Treasurys — compelling investors to rethink what true safety looks like in the face of fiscal sustainability concerns and looming wars.

Read more here.

— Lee Ying Shan

Good morning and welcome to CNBC’s live blog covering European financial market action and the latest regional and global business news, data and earnings.

Futures data from IG suggests sharp…