European Shares Steady Amid Trade Policy Uncertainty

European shares remained stable on Monday following a period of high volatility due to U.S. tariffs uncertainty. The STOXX 600 index briefly rose, buoyed by chemical firms. Defence stocks gained as Germany plans higher spending, while European banks fell amidst trade war concerns. Assura saw a significant rise due to a proposal.

European shares held steady on Monday as investors paused for thought after a volatile week driven by uncertainties surrounding U.S. trade tariffs.

The pan-European STOXX 600 index inched up by 0.07% as of 0810 GMT, following its first dip in ten sessions on Friday. The dip was caused by frequent shifts in U.S. trade policy, which fostered a risk-off approach amongst investors. Notably, chemical firms were among the day's frontrunners, registering a 1% gain.

In the defence sector, recent bullish trends continued, fueled by Germany's plans to boost defence spending. Rheinmetall and Renk shares climbed 3% and 4.4%, respectively. Berenberg Bank anticipates a $686 billion increase in Europe's defence budgets by 2035, promising substantial earnings growth for defence stocks that haven't been seen in three decades.

However, European banking stocks saw a 0.7% decline, curtailing wider market gains. Investors' apprehensions about an escalating global trade war, which threatens to impact the U.S. economy, remain high, with some fearing a possible recession.

Elsewhere, Assura's shares surged by 14.1% following a non-binding 1.61 billion pound ($2.08 billion) proposal from KKR and Stonepeak Partners, a significant development for the British healthcare real estate investment trust.

(With inputs from agencies.)