European Markets Soar as Steel Stocks Lead Gains Amid EU Tariff Plans
European shares reached record highs driven by steel stocks after the EU announced its plan to reduce steel import quotas. A significant rise in banking stocks balanced declines in automakers, particularly after BMW's forecast reduction. Meanwhile, political uncertainties in France and technology sector declines were notable influences.
European stock markets soared to record levels on Wednesday, propelled by a surge in steel stocks following the European Union's announcement to cut steel import quotas substantially. The broader banking rally also played a crucial role, mitigating some of the downturns in the automotive sector triggered by BMW's forecast cut.
The pan-European STOXX 600 index rose 0.5% to 572.2 points, with local exchanges in the UK and Germany also seeing gains. Banking stocks added the most to the benchmark, increasing nearly 1% as banks like Lloyds, Societe Generale, and BPER Banca led the charge.
While steelmakers such as ArcelorMittal and Aperam posted significant gains, automotive shares took a hit, with BMW dropping 8.9% due to altered tariff expectations and slower Chinese market growth. Simultaneously, a cautious optimism surrounds France's political landscape as discussions on budget approval continue.
(With inputs from agencies.)
Google News