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Europe Markets: European stocks cheer North Korea’s pullback on missile threat

European stocks continued to rise on Tuesday, with investors encouraged by North Korea’s decision not to follow through with its threat to attack U.S. island territory Guam following a war of words between the two nations.

The Stoxx Europe 600 index SXXP, +0.09% advanced 0.3% to 377.41, adding to a 1.1% jump from Monday.

The positive trading mood has been spurred by receding fears that the U.S. and North Korea are heading toward a nuclear war.

U.S. officials over the weekend played down the threat of a military conflict, saying they instead were seeking diplomatic solutions with the isolated nation.

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