European Stocks Surge Amidst Political Turmoil in France

European stocks reached a one-month high with Germany's DAX briefly hitting 20,000. The market responded to the potential collapse of France's government amid political tensions. Retail and defense stocks led gains while Prime Minister Michel Barnier faces no-confidence motions. Significant market movements include Worldline, ASML, Delivery Hero, and Hugo Boss.

European stocks surged to a one-month high on Tuesday as Germany's DAX briefly reached the 20,000 mark, amidst ongoing political uncertainty in France. The pan-European STOXX 600 climbed 0.3%, marking its fourth consecutive session of gains. Retail and defense stocks spearheaded sectoral advances with over 1.4% increases.

Germany's DAX closed up 0.4%, buoyed by tech entities like SAP, while Italy and Spain saw increases of 1% and 1.1% respectively. France's CAC 40 rose by 0.2%, with markets skittish about the impending likely collapse of France's three-month-old government. Among other concerns, far-right and left-wing parties have launched no-confidence motions against Prime Minister Michel Barnier, casting doubt on his government's future.

Market movements were influenced by various factors, including weaker euro aiding exports and stable U.S. tariffs. Prominent movers included Worldline amidst takeover speculation, ASML's resilience to export restrictions, and shifts in stock ratings from UBS and BofA Global Research impacting Hugo Boss and Hochtief. Meanwhile, Mercedes-Benz shares dipped following a Barclays downgrade.

(With inputs from agencies.)