Between hopes for a de-escalation in the Persian Gulf and a fresh wave of corporate earnings, investor optimism is prevailing.

U.S. Secretary of State Marco Rubio indicated that the United States would present a resolution to the UN Security Council aimed at 'defending freedom of navigation and securing the Strait of Hormuz'.

The text, drafted alongside Bahrain, Saudi Arabia, the United Arab Emirates, Kuwait, and Qatar, calls on Iran to cease attacks, mining, and any form of toll collection in the strait, the U.S. top diplomat specified.

On the ground, a CMA CGM vessel was struck by a missile in the Strait of Hormuz, leaving several sailors injured. The French group's ship was attempting the crossing under U.S. escort before being targeted. Just two days after its launch, 'Project Liberty' was ultimately suspended by Donald Trump.

Against this backdrop, oil prices continue to retreat in mid-morning trading, with Brent shedding 3.37% to 106.46 dollars per barrel.

Stocks in motion

On the Paris Bourse, AXA is trading up 3.55%, bolstered by Tuesday's report of a 6% increase in gross written premiums and other revenue on a like-for-like basis for the first quarter.

Scor (+4.72%) is also among the market's top gainers after unveiling quarterly net income up 12.8% year-on-year, beating analyst expectations.

Conversely, JCDecaux is down 1.98%, following the release of its quarterly revenue after yesterday's market close.

In Europe, Novo Nordisk is jumping nearly 7%. The Danish laboratory, manufacturer of the anti-obesity treatment Wegovy, posted adjusted operating profit above expectations for the first quarter and slightly raised its guidance for the current fiscal year.

Lufthansa is advancing by nearly 3%, supported by its quarterly results as well as the decline in oil prices.

Continental is climbing 5% after reporting first-quarter operating profit (Ebit) that exceeded expectations, driven notably by improved profitability in its automotive business.

On the macroeconomic front

In the eurozone, service sector activity contracted in April, according to the PMI index published by S&P Global, although the decline proved slightly less pronounced than expected. The index came in at 47.6 points, compared to 50.2 points in March, while analysts had on average anticipated 47.4 points. This represents its lowest level in 62 months.

Investors will also be monitoring the release of eurozone producer prices during the session, as well as the ADP employment report in the United States.

On the foreign exchange market, the euro is up 0.16% against the dollar, at 1.1734 dollars.