Stoxx Europe 600 closes 1.2% higher on hopes of Iran-Israel ceasefire

European stocks ended the day on a high as the Israel-Iran ceasefire appeared to be holding.

The Stoxx Europe 600

 index provisionally rose 1.2% for the day. Regionally, Germany’s DAX and France’s CAC 40 rose 1.6% and 1% respectively. The U.K.’s FTSE 100 tentatively closed flat.

Among the stocks losing the most were oil and gas related, such as tanker owner Frontline, energy giants Equinor and BP, as well as defense contractors BAE Systems, Thales, Dassault Aviation, Hensoldt, Renk and Rheinmetall.

Travel stocks and building materials firms led gains on the Stoxx Europe 600

 index during afternoon trade.

Carnival Plc shares jumped 12% after the company beat adjusted earnings per share expectations for the second quarter with $0.35 per share.

Shares of TUI Group

 were also up by more than 10% after the company announced a deal to acquire a 20% stake in Swiss tour operator Bentour Reisen. TUI also sold a 20% stake in its subsidiary, Nazar Nordic, to Bentour Reisen.

Building materials and construction stocks, Amrize

, Buzzi and Holcim

 were all trading up between 6% and 11%, indicating a risk-on mood among investors as the Israel-Iran ceasefire appears to be holding.