European shares close modestly higher

The pan-European Stoxx 600 gained 0.23% to 629.14

European shares closed modestly higher on Tuesday. The pan-European Stoxx 600 gained 0.23% to 629.14.

Germany’s DAX edged down 0.02% to 24,986.25, France’s CAC 40 added 0.26% to 8,519.21 and the FTSE 100 slid 0.04% to 10,680.59.

Most global stock indices recovered despite mixed economic data while cryptocurrencies stayed under pressure amid investor fatigue, said Axel Rudolph, chief technical analyst at IG, highlighting that equity markets had steadied despite persistent cross-asset volatility.

In economic data, new car sales across the European Union dropped to their lowest level in five months in January.

Passenger vehicle registrations totalled 799,625, down 17.0% from 963,319 in December and 3.9% lower than January 2025, marking the first year-on-year monthly decline since June, according to the European Automobile Manufacturers’ Association.

Germany and France both recorded annual falls of 6.6%, while sales declined 16.2% in Italy and 33.8% in Spain.

Battery-electric vehicles accounted for 19.3% of new sales, up from 14.9% a year earlier, while hybrid-electric cars increased their share to 38.6% from 34.9%.

Plug-in hybrids rose to 9.8% from 7.4%.

By contrast, petrol cars’ share dropped to 22% from 29.5% and diesel declined to 8.1% from 10%.

The ACEA said hybrid-electric vehicles were now the most popular power type, with plug-in hybrids consolidating their position and underlining the importance of a technology-neutral pathway to decarbonisation.

In equities, Mandatum slipped 9.08% after private equity firm Altor sold 35 million shares in the Finnish asset manager at a 7% discount.

MTU Aero Engines declined 6.64% despite guiding for 2026 revenue and profit broadly in line with forecasts, citing sustained high demand for engine maintenance services.