European Markets Surge Amid Light Trading

Europe's main stocks index, the STOXX 600, opened higher, led by gains in travel, leisure, and energy sectors, despite thin trading ahead of the Christmas break. Markets remain cautious as concerns over potential trade tensions with the U.S. under President-elect Donald Trump buoy inflation expectations.

Europe's main stocks index, the STOXX 600, experienced a positive start on Tuesday, posting gains primarily driven by the travel, leisure, and energy sectors. Investors witnessed a 0.2% rise by 0855 GMT, although trading volumes were light due to many markets shutting or operating with reduced hours for the Christmas period.

Partial trading continued in Amsterdam, Brussels, and Paris, while markets in Frankfurt and Milan remained closed. As the year end nears, market participants remain on alert for developments related to U.S. President-elect Donald Trump's impending inauguration. Trump's rhetoric on imposing import tariffs continues to stir economic uncertainty.

Notably, energy stocks tracked higher oil prices, while travel and leisure reversed earlier losses with a 0.5% gain. However, Britain's Vistry Group saw a sharp decline on a downbeat fiscal forecast. France, meanwhile, announced a new government to steer the country through budget approvals and avoid a financial crisis.

(With inputs from agencies.)