European Shares Surge Amid Luxury Boost and Healthcare Gains

European shares reached a three-month high, with healthcare and luxury sectors leading the charge, despite uncertainties over U.S. President Donald Trump's proposed tariffs. The STOXX 600 index climbed on luxury and drugmaker Novo Nordisk advancements. Concerns over U.S.-EU trade relations loomed as U.S. tariffs were discussed.

European shares climbed to a three-month high on Tuesday, as the healthcare and luxury sectors provided a significant boost. The pan-European STOXX 600 index closed up 0.4% at 525.98 points, marking its fifth straight day of gains – the longest winning streak in over a month.

Healthcare was the biggest contributor, with a 1.5% rise, driven by drugmaker Novo Nordisk, which saw a 4% increase. Luxury stocks, including a 5.3% surge in Burberry, also added to the rally. However, uncertainties surrounding U.S. President Donald Trump's proposed tariff measures tempered the uptick.

Globally, markets buzzed as Trump's presidency began, with the spectre of tariffs looming over trade relations. While Trump spared China and the EU from immediate tariff boosts, European automakers faced pressure, with shares of Volkswagen, BMW, and Stellantis dipping due to potential tariff threats.

(With inputs from agencies.)