European stocks rise, boosted by energy and healthcare shares, but tariff uncertainty persists.
The pan-European STOXX 600 index closed 0,41% higher.
(Reuters)- European stocks closed higher on Tuesday, boosted by healthcare and energy sectors, as investors assessed the latest phase of US President Donald Trump's tariff announcement, which included a new deadline for trade deals.
The pan-European STOXX 600 index closed 0,41% higher at 545,71 points, reaching its highest level in three weeks.
The energy sector advanced 1,1% with the rise in crude oil prices, and the healthcare sector gained 0,8%, with Danish pharmaceutical manufacturer Novo Nordisk, one of the most heavily weighted stocks in the STOXX 600, rising 2%.
Trump told 14 nations on Monday that they will face tariffs ranging from 25% for countries like Japan and South Korea to 40% for Laos and Myanmar.
However, with the start date postponed to August 1st, a three-week window was effectively created for countries to push for better conditions, prolonging the damaging uncertainty about the terms of trade.
"Trump's decision to postpone the tariff deadline to August 1st may have temporarily calmed market nerves, but underlying uncertainty remains," said Lukman Otunuga, senior market analyst at FXTM.
"If no significant trade agreement is reached in the coming weeks, investors should prepare for another wave of volatility."
European Union sources told Reuters on Monday that the bloc will not receive a letter from the US establishing higher tariffs and is focused on possible exemptions from the US's 10% base tariff.
Countries have been under pressure to strike deals with the U.S. after Trump launched a global trade war in April, which shook financial markets and led monetary policymakers to scramble to protect their economies.
In LONDON, the Financial Times index rose 0,54% to 8.854,18 points.
In Frankfurt, the DAX index rose 0,55% to 24.206,91 points.
In Paris, the CAC-40 index gained 0,56%, to 7.766,71 points.
In Milan, the FTSE MIB index rose 0,67% to 40.182,62 points.
In Madrid, the Ibex-35 index registered a positive variation of 0,03%, to 14.079,50 points.
In Lisbon, the PSI20 index registered a positive variation of 0,01%, to 7.733,44 points.
