Precise Investors Editorial Team
The pan-European STOXX 600 closed up 0.91 per cent at 568.01
European shares extended gains on Tuesday, led by materials and financial stocks, as investors continued to draw optimism from prospects of a ceasefire in Ukraine and expectations of interest rate cuts in the U.S.
The pan-European STOXX 600 closed up 0.91 per cent at 568.01. Regional bourses ended higher, with Germany’s DAX and France’s CAC up 1 per cent and 0.8 per cent, respectively.
Prospects for an end to the nearly four-year-old Russia-Ukraine conflict continued to drive the STOXX 600 index, with European construction and materials stocks extending their rally, up 2.4 per cent. Germany’s Heidelberg Materials climbed 6.6 per cent, cement maker Buzzi gained 6.1 per cent, and stone-wool manufacturer Rockwool soared 4.5 per cent.
Ukraine on Tuesday signalled support for the framework of a peace deal with Russia but stressed that sensitive issues needed to be fixed at a meeting between President Volodymyr Zelenskiy and U.S. President Donald Trump.
The European defence sector was up 1 per cent after slipping more than 5 per cent in the last two sessions on expectations that the war in Ukraine was approaching its end.
The European Parliament approved a €1.5 billion ($1.7 billion) scheme to fund defence investments across the European Union (EU) and support Ukraine.
It’s been back and forth since last week with the peace-talk news, but it looks like the Russians are not going to play ball and the deal could just fizzle out. That means Europe still needs to spend more on defence, which would’ve been the case anyway, said Chris Beauchamp, chief market analyst at IG Group.
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