European Stocks Close Higher As Investors React To EU-India Trade Deal

(RTTNews) - European stocks closed broadly higher on Tuesday with investors reacting positively to the EU-India trade deal, and some corporate updates, while awaiting the monetary policy announcement from the Federal Reserve, due on Wednesday.

Investors also assessed the potential impact U.S. tariffs might have on global trade.

U.S. President Donald Trump, who threatened 100% tariffs on Canadian goods if Canada strikes a trade deal with China, has announced he would raise tariffs on South Korean imports to 25% because of a delay in the South Korean Legislature approving a trade deal with the U.S.

Investors also looked ahead to upcoming major U.S. tech earnings updates.

The European Union and India agreed a free trade deal Tuesday, the largest such deal ever clinched by either side, as they contend with an erratic trade policy from key trading partner the United States.

"We did it, we delivered the mother of all deals," Ursula von der Leyen, president of the European Commission, the EU's executive, told reporters in New Delhi.

The agreement will strengthen economic and political ties between the 27-nation bloc and the world's fourth-largest economy, the commission said in a statement, "at a time of rising geopolitical tensions and global economic challenges, highlighting their joint commitment to economic openness and rules-based trade."

"We have sent a signal to the world that rules-based cooperation still delivers great outcomes," von der Leyen said in the statement.

The pan European Stoxx 600 climbed up 0.58%. France's CAC 40 gained 0.27% and the U.K.'s FTSE 100 advanced 0.58%, while Germany's DAX ended down by 0.15%. Switzerland's SMI closed up by 0.56%.

Among other markets in Europe, Belgium, Czech Republic, Finland, Greece, Ireland, Netherlands, Norway, Poland, Portugal, Russia, Spain and Sweden closed higher.

Denmark, Iceland and Turkiye ended weak, while Austria closed flat.

Financials shares had a good session. Automakers were broadly lower after India and the European Union successfully concluded a Free Trade Agreement, cutting tariffs on cars from 110 percent to 10 percent for 250,000 vehicles annually.

In the UK market, Metlen Energy & Metals surged 3.5%. HSBC Holdings, Babcock International, Natwest Group, St. James's Place, Kingfisher, Spirax Group, BT Group, Lloyds Banking Group and BAE Systems gained 2 to 3%.

Fresnillo tumbled nearly 7%. Relx, The Sage Group and Experian lost more than 5%. Endeavour Mining, LSEG, Entain, Diageo, Pearson, Pershing Square Holdings, Compass Group, Informa, Hikma Pharmaceuticals, Convatec Group and Schroders lost 1.2 to 4.3%.

Shares of bootmaker Dr. Martens plummeted 12% after the company forecast broadly flat revenue for the whole of fiscal 2026, citing stronger currency headwinds.

In the German market, Rheinmetall gained more than 3%. Fresenius advanced 2.75%, while Commerzbank, MTU Aero Engines, Zalando, Deutsche Post, Infineon, E.ON and RWE gained 1.3 to 2%.

Puma shares surged nearly 10% after China's Anta Sports said it would buy a 29.06% stake in the German sportswear maker for €1.5 billion ($1.8 billion).

Gea Group, Deutsche Boerse, Porsche Automobil, SAP, Qiagen, Mercedes-Benz, Brenntag, Volkswagen, Vonovia, Beiersdorf and Henkel ended lower by 1 to 3%.

In the French market, Legrand, Bouygues, Credit Agricole, BNP Paribas, Thales, Vinci, Societe Generale, Veolia Environment, ArcelorMittal, Saint-Gobain, STMicroElectronics, Orange and TotalEnergies gained 1 to 3%.

Publicis Groupe lost more than 4%. Pernod Ricard ended down by 2.8%. Capgemini, Edenred, Renault, L'Oreal and Airbus closed lower by 1.2 to 2%.

Data released by the statistical office INSEE showed consumer confidence in France stood at 90 in January 2026, unchanged from December and in line with expectations, remaining below the long-term average of 100.