FRANKFURT: European shares ended higher on Wednesday, led by renewable-energy stocks after a revised budget bill in the United States passed a crucial vote, while focus was on any trade deals ahead of US President Donald Trump’s July 9 tariff deadline.
The pan-European STOXX 600 index closed 0.2% higher. French equities were among the top gainers in the region with a 1% jump.
Paris-listed shares of luxury giant LVMH, Italy’s Moncler and UK’s Burberry all climbed about 4% each, among the top boosts on the STOXX 600.
Swiss bank UBS lifted its rating on European luxury to “benchmark” from “underweight,” arguing the recent share underperformance has created a tactical opportunity despite ongoing risks in China.
Mining-related stocks topped the STOXX sub-sectors, with steelmakers including ArcelorMittal and Thyssenkrupp advancing the most.
Auto stocks climbed 1.6%, while euro zone banks added 1.5%.
Shares in European renewable energy companies rose after the US Senate passed a revised budget bill that was more positive for the wind industry compared to an earlier version.
“This policy shift, coupled with the resumption of construction work on Equinor’s Empire Wind project off the New York coast, suggests that the worst-case scenario for the renewables sector under the Trump administration may not materialise,” said Tancrede Fulop, senior equity analyst at Morningstar.
Vestas advanced 10.1% and was the top gainer in the STOXX 600. Orsted gained 1.8%.
On the downside, a slate of UK-listed companies were at the bottom of the STOXX 600, while the local midcap index, which is more sensitive to domestic developments, dropped 1.3%.
The pound, along with British stocks and bonds dropped after a
tearful appearance by Chancellor Rachel Reeves in parliament a day after the government backed down on its welfare reforms reigniting concern over Britain’s finances.
In the latest on global trade negotiations, Trump said the United States has struck a trade deal with Vietnam.
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