European Shares Soar as EU Gears up for Retaliation Against Trump's Tariffs

European shares reached record highs despite volatile trading as investors assessed the EU's potential response to U.S. tariffs on steel and aluminum. The STOXX 600 index rose slightly, driven by banking gains, while basic resources and travel sectors fell. Rising luxury goods shares and solid corporate earnings contributed to market strength.

European shares ended a turbulent session on a high note, reflecting investor reactions to the European Union's approach towards U.S. President Donald Trump's announced tariffs on steel and aluminum imports, which negatively impacted basic resources stocks.

The pan-European STOXX 600 index nudged up 0.2%, with banking stocks driving sectoral gains, climbing 1.4%. Meanwhile, a 1.9% dip in basic resources stock mirrored the drop in base metal prices due to new U.S. tariffs.

Debate over the anticipated tariffs saw the European Commission promise countermeasures, while gains in luxury stocks and corporate earnings optimism pushed the benchmark STOXX index upwards by 7.8% year-to-date.

(With inputs from agencies.)