European Shares Surge as Trade Tensions Ease
European stocks surged on Friday with significant gains across energy and real estate sectors, fueled by diminishing trade tensions and geopolitical concerns. The STOXX 600 index marked its first monthly rise in three months, buoyed by de-escalated US tariffs and increased defence spending in Europe.
European shares saw a notable rise on Friday, bolstered particularly by energy and real estate stocks. This upward trend indicates a strong finish for the month as diminishing trade tensions rekindled risk-taking among investors.
The STOXX 600 index gained 0.5% at 0842 GMT, counteracting initial pressures from a brief reintroduction of some of President Trump's broadest tariffs, despite a recent court order blocking them. The index was set to achieve its first monthly growth in three months, advancing 4.4%, primarily owing to easing trade disputes and heightened U.S. fiscal concerns driving investors away from American assets.
The aerospace and defence sector was a standout performer for the month, climbing over 14% amid thwarted hopes for peace between Russia and Ukraine. Increased European defence spending has attracted global investors, according to Philip Marey of Rabobank. Additionally, a prospective record-setting rally for euro zone equities is anticipated by 2026, according to a Reuters Poll.
(With inputs from agencies.)
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