FRANKFURT: European shares closed higher on Tuesday with defence stocks boosting the market after US President Donald Trump threatened additional sanctions on Russia, while optimism lingered from the delay of US tariffs on the European Union.
The STOXX 600 index closed 0.3% higher, building on Monday’s 1% rise after Trump gave the EU a reprieve on his threatened 50% tariffs.
EU policymakers have asked the bloc’s leading companies and CEOs for US investment plans to prepare for trade talks with Washington, according to two sources.
The bloc set up trade meetings with the United States, a step Trump said was positive.
The latest flip-flop on EU tariffs highlights the unpredictability of Trump’s trade policies, that have been shaking investor confidence and raising concerns over the fiscal health of the US economy. The uncertainty has been pushing investors away from US assets to find other safe havens internationally. Europe’s defence index jumped 1.7% to a record high, after Trump said he would recommend additional sanctions on Moscow, amid escalating tensions between Russia and Ukraine.—Reuters
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