European Shares Climb Amid Positive German Sentiment and Energy Boost

European shares gained on improved German business sentiment and energy stock growth. The STOXX 600 index increased, bolstered by Spanish and French markets. A survey showed optimism in Germany, while U.S. trade policy and tariff concerns kept traders cautious. Investors are also eyeing US-Ukraine discussions on Black Sea peace proposals.

European shares rose on Tuesday as Germany reported favorable business sentiment, propelling the region's largest economy forward just days after a significant debt deal aimed at reviving stalled growth. The STOXX 600 index increased by 0.4% at 0910 GMT, driven primarily by gains in Spanish and French markets.

Energy stocks surged by 1.1% in response to rising oil prices, spurred by U.S. tariffs on countries purchasing Venezuelan crude. Swiss insurance firm Baloise led the STOXX 600 with a notable 6% rise following impressive profit results for 2024. The broader insurance sector index also advanced by approximately 1%.

Despite this uptick, traders remain vigilant amid continued uncertainty surrounding U.S. trade policies. Potential tariff exemptions prompted a cautious approach towards U.S. stocks, while European equities settled marginally. Amid global economic unease, Swiss logistics group Kuehne und Nagel projected lower-than-expected profits, driving shares down by 3.8%. Meanwhile, home improvement retailer Kingfisher faced a 12% plummet due to decreased demand.

(With inputs from agencies.)