EU stocks rise as defense sector shares gain traction

On Tuesday, European stocks rose as defense sector shares gained after the US administration suspended plans to impose 50% tariffs on imports from the EU, Reuters reports.

In Germany, the DAX 40 closed the trading session at an all-time high, up 0.8% to 24,316.5. Market optimism was bolstered by a Reuters poll suggesting that consumer sentiment is set to improve slightly heading into June. However, the German Chamber of Commerce and Industry forecasts a slowdown in the country’s economic growth this year.

EU officials have requested investment plans regarding US companies from the region’s largest organizations as part of preparations for trade talks with the United States, Reuters notes.

According to experts surveyed by the agency, the unpredictable policies of American President Donald Trump are shaking investor confidence and raising concerns about the stability of US GDP. This uncertainty is forcing traders to divest from American assets and seek alternatives in international markets.