Record High for European Shares Amidst Stabilizing Commodities and Earnings Focus

The European STOXX 600 index hit a record, boosted by a stabilized commodity market and anticipation around corporate earnings, particularly from firms like Amundi and Publicis. Basic resources led sectoral gains. Meanwhile, Germany plans significant military space investments amid global tensions, with Europe's industrial stocks supported by defense and infrastructure spending.

The European stock market reached historic highs on Tuesday, spurred by a stabilizing commodity market and mounting interest in corporate earnings reports from big players such as Amundi and Publicis.

The pan-European STOXX 600 index rose 0.4% to 619.86 points, recovering from pressures in commodity-linked stocks. Basic resources saw the most substantial increase, climbing 2.3% as commodity prices regained ground after last week's dip sparked by Kevin Warsh's nomination to the U.S. Federal Reserve and a CME margin hike.

In an ambitious move, Germany is considering a €35 billion military space program to address growing orbital security threats from Russia and China. This spending, along with positive manufacturing reports, has bolstered Europe's industrial stocks. Notably, Amundi's earnings exceeded expectations, and Siltronic performed strongly, although Publicis saw a decline. Meanwhile, France saw a smoother political transition with the passing of the 2026 budget.

(With inputs from agencies.)