Cautious Optimism in European Markets Amid Trade Tensions

European shares remained steady as investors navigated trade war concerns and awaited Germany's debt reform vote. The STOXX 600 index showed minor gains, buoyed by developments in Germany. Attention also turned to the U.S. Federal Reserve's upcoming interest rate decision. Phoenix Group saw significant profit-driven growth.

European markets maintained a cautious balance on Monday as the trading week commenced amid ongoing trade tensions. Investors closely monitored developments surrounding Germany's debt reform ahead of critical parliamentary votes expected during the week.

The pan-European STOXX 600 index rose marginally by 0.1% early on Monday. This follows a broader 1.1% increase on Friday, driven by a pivotal agreement among Germany's political parties to extensively increase state borrowing for defense and infrastructure.

Investors were also geared towards the U.S. Federal Reserve's interest rate announcement on Wednesday, with consensus predicting no change. Meanwhile, the British insurer Phoenix Group experienced a significant 6.1% uptick in shares, fueled by better-than-anticipated profit results.

(With inputs from agencies.)