European stocks close higher as trade war fears fade
The pan European Stoxx 600 jumped 1.03%, DAX added 1.2%, while CAC 40 gained 0.99%
European stocks closed higher on Thursday as trade war fears faded after U.S. President Donald Trump dropped planned tariffs on eight European countries and ruled out using force to take Greenland.
We probably won’t get anything unless I decide to use excessive strength and force, where we would be, frankly, unstoppable. But I won’t do that. Okay? Trump said in his speech at the World Economic Forum in Davos, Switzerland on Wednesday.
The pan European Stoxx 600 jumped 1.03%. Germany’s DAX added 1.2%, France’s CAC 40 gained 0.99% and the U.K.’s FTSE 100 edged up 0.12%. Switzerland’s SMI ended 0.54% up.
Among other markets in Europe, Belgium, Czech Republic, Denmark, Finland, Greece, Iceland, Ireland, Netherlands, Poland, Portugal, Spain and Sweden closed with sharp to moderate gains.
Norway closed weak, while Austria and Russia closed flat.
In the UK market, St. James’s Place and Metlen Energy & Metals jumped 4.31% and 4.25%, respectively. Hikma Pharmaceuticals, JD Sports Fashion, Spirax Group, Convatec Group, Easyjet, Vodafone Group, Ashtead Group, Weir Group, IAG, Mondi, IMI, Schroders, Barclays and Diploma added 2 to 3.1%.
Admiral Group declined 4.7%. BAE Systems shed nearly 3.7%. ICG, Rio Tinto, Shell, Antofagasta, Glencore, BP, Experian, Anglo American Plc, Aviva, Relx, Babcock International, Tesco, Legal & General and Next dropped 1 to 2.7%.
In the German market, Volkswagen rallied more than 6% after reporting stronger than expected cash flow for the financial year 2025.
Porsche Automobile added nearly 4.7%. Heidelberg Materials, Deutsche Bank, Infineon, Siemens Energy and Merck moved up 3 to 4.2%.
Bayer jumped nearly 3% after announcing that its investigational cell therapy, OpCT-001, has received Orphan Drug Designation from the FDA for treating retinitis pigmentosa.
Deutsche Boerse added almost 2.3% after announcing a record $5.3 billion deal to acquire Amsterdam-listed fund trading platform Allfunds, aiming to bolster its position in Europe’s investment fund market.
Continental, Fresenius Medical Care, Zalando, BASF, Siemens, Brenntag, Scout24, Deutsche Telekom, Fresenius and Commerzbank rose 2 to 2.7%.
In the French market, ArcelorMittal climbed around 6.5%. TP jumped almost 6%. Orange and Bouygues moved up sharply as the two companies along with Iliad’s Free said they are in negotiations with Altice Group to buy a large part of its telecommunications activities in France.
Saint Gobain, Michelin, Societe Generale, BNP Paribas, Vinci, Accor, Kering, Capgemini, Hermes International, Bouygues, Veolia Environment, Unibail Rodamco and LVMH added 2 to 3.4%.
Thales and Edenred closed lower by 3.7% and 3.5%, respectively. Safran closed with a loss of nearly 2.7%.