(Il Sole 24 Ore Radiocor) - Milano, 10 apr - European shares closed mostly higher as investors maintained a stance of cautious optimism ahead of critical diplomatic negotiations scheduled for this weekend.

Market sentiment improved following reports that Israel has agreed to begin direct negotiations with Lebanon and ahead of planned talks between the US and Iran in Pakistan.

The move comes as the market weighs the fragile two-week ceasefire window against persistent tensions in the Strait of Hormuz, with investors looking for a de-escalation that could stabilize global energy flows.

Progress in talks between Ukraine and Russia also helped sentiment with the two sides agreeing to a 32-hour ceasefire ahead of the Orthodox Easter.

On the data front, Italy's seasonally adjusted industrial production rose 0.1% in February, a recovery compared to the 0.4% decrease recorded in the December-February average, while the calendar adjusted figure grew 0.5% year on year.

In Germany, the annual inflation rate was confirmed at 2.7% in March, following a 1.1% monthly increase, according to figures from Istat and Destatis.

The London FTSE 100 closed down 0.02% at 10,600.53 points, the Frankfurt DAX rose 0.13% at 23,786.05 points, the Paris CAC 40 gained 0.17% at 8,259.60 points, while in Milan the FTSE MIB added 0.59% at 47,609.36 points, and in Madrid the.

IBEX 35 closed 0.42% higher at 18,180.90 points.

(RADIOCOR) 10-04-26 18:03:31 (0526) 5 NNNN