European Markets Climb as Trade Drama Unfolds
European stock markets ended with gains on Friday, buoyed by U.S. tariff developments. Investors assessed U.S. President Trump's latest tariff maneuvers, with the STOXX 600 closing 0.1% higher. Notable performers included utilities and healthcare shares, while aerospace and defense led throughout the month due to geopolitical tensions.
European shares ended the week with positive gains, wrapping up the month amidst ongoing trade uncertainties linked to U.S. President Donald Trump's tariff policies. Despite a temporary restoration of extensive tariffs by Trump, which was swiftly countered by another court ruling halting them, the STOXX 600 index inched up by 0.1% on Friday.
The index had previously seen its most significant monthly increase in three months, advancing by around 4%. This came as investors reacted to Trump's decision to delay tariffs on European Union imports, granting Brussels a chance to clinch a trade agreement with Washington. Investors also showed apprehension due to recent U.S. fiscal problems, driving them towards non-U.S. assets.
Sectorial performances varied, with utilities and healthcare shares rising by 0.8%, whereas construction and materials stocks fell 1%. France's aerospace and defense index emerged as the biggest winner of the month, with a 14% increase, propelled by strained Russia-Ukraine relations. In Germany, the DAX 40 rose 0.3%, aided by easing inflation aligning with the European Central Bank's target, despite a retail sales dip.
(With inputs from agencies.)
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