European markets powered higher on Tuesday, reigniting investor interest with strong momentum just ahead of key U.S. trade measures. Cooling inflation figures across the euro zone and a standout performance from German industry stocks helped lift the mood, with investors positioning themselves ahead of anticipated policy moves from Washington.
The pan-European Stoxx 600 index climbed 1.2% by mid-morning in London, extending gains on the back of a reassuring inflation report from Eurostat showing euro zone inflation slowed to 2.2% in March, in line with expectations. This cooling inflation data provided markets with breathing space, softening concerns around further rate hikes.
Leading the rally was Germany’s DAX, which rose 1.6%, driven by a standout performance from Thyssenkrupp. Shares in the industrial group surged 10% after analysts at Kepler Cheuvreux upgraded the stock to “buy” from “hold”. The upgrade was backed by expectations of stronger fiscal spending in Germany, boosting both the steel and defence sectors in which Thyssenkrupp is a key player.
Investors across the region took the data and analyst sentiment as signs of improving conditions ahead of potentially disruptive trade policy changes from the U.S., opting to shift into equities with cyclical and industrial exposure.
Fidelity European Trust PLC (LON:FEV) aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.
