European shares advanced on Wednesday as investors awaited details of the US-Iran peace agreement and the Federal Reserve’s policy ​outlook, while auto stocks fell after BMW cut its annual forecast.The Fed’s monetary policy decision after the European markets close would be the first under its new chair, Kevin Warsh. The pan-European Stoxx 600 index closed 0.5 per cent higher, in its fifth session of gains.DUBLINThe Iseq All-Share index added 0.4 per cent to close at a fresh all-time high of 13,738.61. Banking stocks were in demand, in line with a trend observed across Europe, with AIB up 2.1 per cent at €10.61 and Bank of Ireland gaining 2.9 per cent to €18.34. Home builders were also in demand, amid hopes that the US-Iran deal will hold and that a slump in oil prices in recent days will be maintained – limiting inflation and the need for a raft of interest rate hikes. Cairn Homes rose 1.8 per cent to €2.30, while Glenveagh Properties added 2.5 per cent to €2.44. LONDONThe FTSE 100 closed up 0.1 per cent at 10,508.61.Barclays climbed 3.4 per cent as Bank of America raised its share price target and reiterated a buy rating.Scottish engineering group Weir Group rose 2.7 per cent as it was awarded a “significant” pumps order from Lloyds Metals and Energy, which it said shows the “strength of our technology”.Elsewhere, Smiths News rose 9.8 per cent after securing a long-term distribution agreement with News UK, publisher of the Sun and the Times newspapers.Thursday’s local corporate calendar has trading statements from food retailer Tesco and Premier Inn owner Whitbread.EUROPECar stocks declined the most, down 3.3 per cent, their biggest one-day fall in nearly a month. BMW lost 8.3 per cent after the premium carmaker lowered its ​annual profit outlook due to weakness in the Chinese market and the impact of the US-Iran war.Heavyweight banks supported the Stoxx 600, ⁠advancing 1.9 per cent. They also logged their fifth session of ​gains, their longest streak since early January.Tech stocks climbed 1.5 per cent, ​with Aixtron up 6.7 per cent and BE Semiconductor and ASML adding about 4 per cent each. Defence stocks were up 0.5 per cent.Global investors remained cautious ‌in advance of the signing of a peace deal ​between the US and Iran on Friday after president Donald Trump said the new agreement was not final ⁠and he could resume the war if he is ⁠unsatisfied.The sharp drop in ​oil prices since the announcement of the deal lifted the benchmark Stoxx 600 to record highs, but it still lags behind the US benchmark S&P 500.Orange slipped 3.3 per cent after Barclays reinstated coverage at equal-weight, the equivalent of a hold recommendation, saying value creation is likely to take time.NEW YORKWall Street’s main indexes were ahead in early afternoon trading in New York, ‌as chip stocks rebounded in advance of the Fed meeting outcome. Shares of richly valued chipmakers, including Broadcom, Micron Technology, Advanced Micro Devices and Intel, rose. US stocks have been choppy after a sharp rally on Monday when Trump announced a preliminary US-Iran peace deal, which sent oil prices tumbling and eased inflation fears.Software shares came under renewed pressure on Wednesday, with Adobe, Salesforce and Atlassian down. Data showed US retail sales increased more than expected in May, but a slowdown is likely as the cushion that consumers had from ⁠larger tax refunds depletes due to rising costs.Traders see the Fed holding rates through much of the year, but are betting on a nearly 43 per cent chance of a quarter of a percentage point rate hike in December, according to CME Group’s FedWatch tool.Shares of Elon Musk’s SpaceX rose after surpassing Amazon’s market value on Tuesday to become the world’s fifth most valuable company. – Additional reporting, Reuters, Press Association