European Stocks Close at 5-Month Highs
European stocks closed sharply higher on Tuesday, their highest since March, amid optimism on steps taken to end the war between Russia and Ukraine. The Eurozone's STOXX 50 added 0.9% to 5,486 and the pan-European STOXX 600 rose 0.7% to 558. European leaders met with US and Ukraine Presidents Trump and Zelensky in Washington DC yesterday and signaled they would provide security guarantees to Ukraine if it proceeds to end the war.
Consumer discretionary companies, which are commonly impacted by risk sentiment, led the gains with LVMH and Kering each jumping 3%, while Stellantis and Mercedes Benz added 3.2% and 2.7% to set the pace for auto producers. On the broader index, Mediobanca advanced after gaining approval to acquire Banca Generali, which would create Italy's third-largest lender and prevent Banca MPS from acquiring the former. In turn, defense companies fell on the peace optimism, with Rheinmetall, BAE Systems, and Thales dropping over 4%.
Source: Trading Economi