European stocks concluded on a positive note on Tuesday, building on the significant gains recorded in the previous session. This uptick was due to alleviated concerns regarding a potential trade war with the United States, alongside renewed momentum in the defense sector. The STOXX 50 climbed by 0.6%, closing at 5,425, while the broader STOXX 600 advanced by 0.5% to reach 553. Comments from US President Trump suggested that EU officials were swift to initiate discussions for a trade agreement with the US, aiming to reverse the tariffs imposed by the White House. This added to the President's favorable commentary on trade, which had significantly propelled stock performance in the earlier session.
On the economic front, surveys on sentiment in Germany, conducted by GfK, and within the Eurozone reflected improvement for May. Technology stocks led gains within the currency bloc, echoing the positive trend seen among their North American peers, with notable increases of over 1% from companies like ASML and SAP. The defense sector experienced a sharp rise as well, with firms such as Airbus, Rheinmetall, BAE Systems, and Leonardo all posting gains exceeding 2%, following Trump’s threat to impose sanctions on Russia.
