European Shares Steady Amid Trade Tensions and Financial Gains

European shares held steady with slight gains in financials and healthcare despite global uncertainties over U.S. President Donald Trump's proposed tariffs. The market's cautious optimism was challenged by pressure on automakers and basic resources. EU financial leaders urged economic reforms in response to Trump's policies.

European shares exhibited stability on Tuesday, buoyed by gains in financials and healthcare, while the broader market faced uncertainties linked to U.S. President Donald Trump's proposed tariffs following his recent inauguration.

The pan-European STOXX 600 index rose modestly, nearly reaching a three-month high. The healthcare sector led the charge with a 0.7% gain, driven by a 2.9% increase in shares of drugmaker Novo Nordisk. Meanwhile, financial services climbed 0.5%, bolstered by a notable 4.5% surge in abrdn stocks after the British asset manager announced net inflows for the fourth quarter.

Global markets showed mixed reactions to Trump's presidency, particularly his consideration of 25% import tariffs on goods from Canada and Mexico. The European Union's economic leaders urged member states to strengthen their economies to remain competitive, underscoring the potential for a global trade conflict. Automakers Volkswagen, BMW, and Stellantis saw declines due to tariff uncertainties, and basic resources dipped alongside falling metal prices.

(With inputs from agencies.)