European stock markets edged higher Tuesday ahead of a key vote in the German parliament on historic debt reforms, while investors also await developments in the Ukraine peace process with U.S. President Donald Trump set to talk to his Russian counterpart Vladimir Putin later in the session, News.Az reports citing Investing.
At 04:02 ET (08:02 GMT), the DAX index in Germany climbed 0.1%, the CAC 40 in France gained 0.1% and the FTSE 100 in the UK rose 0.1%.
German debt vote scheduled
Germany’s lower house of parliament is set to vote on Tuesday on a proposed massive increase in state borrowing in order to fund a surge in defence spending, which could boost Europe’s largest economy and stimulate growth across the region.
A two-thirds majority is required to pass the legislation to change the constitutionally enshrined borrowing rules to allow higher spending on security, as well as creating a €500 billion fund for infrastructure.
Should the legislation pass the Bundestag lower house of parliament, it still has to go to the Bundesrat upper house, which represents the governments of the 16 states that make up Germany.
Optimism about Germany’s fiscal reset plan has seen money pour into Europe, with the DAX leading the way, gaining more than 16% year to date.
Trump/Putin peace talks
Investors will also be paying attention to the results of a phone call between Trump and Russian President Vladimir Putin later Tuesday, as the U.S. president attempts to convince his counterpart to accept a ceasefire in Russia’s three-year war with Ukraine.
Ukraine has already agreed to the U.S. proposed 30-day truce, and Trump will be looking for a similar commitment from Putin, enabling both sides to get together to discuss how to end the conflict permanently.
Trump has hinted at what aspects would make up a longer-term peace plan, including territorial concessions by Kyiv and control of a nuclear power plant likely to factor into negotiations.
Fraport impressed in 2024
In the corporate sector, Fraport (ETR:FRAG) posted record-breaking revenues and profitability in 2024 despite facing economic and regulatory headwinds, with the German airport operator benefiting from increased passenger traffic and pricing adjustments, both at its Frankfurt hub and across its global network.
Computacenter (LON:CCC)’s results in 2024 reflected a challenging year, with the technology and services provider reporting a sharp first-half decline followed by a strong recovery in the second half.
Crude rises after Gaza strikes
Oil prices rose Tuesday, adding to the previous session’s gains after Israel launched airstrikes across Gaza, reigniting hostilities after stalled hostage negotiations.
At 03:02 ET, Brent futures rose 0.8% to $71.66 a barrel, while U.S. West Texas Intermediate futures rose 0.9% to $67.94 a barrel.
Both contracts gained just under 1% on Monday, buoyed by geopolitical tensions in the Red Sea, and optimism surrounding China’s plan to boost consumption.
Israel launched extensive airstrikes across the Gaza Strip on Tuesday, marking the most significant escalation since the January ceasefire, with . Prime Minister Benjamin Netanyahu authorizing the operations following stalled negotiations to extend the ceasefire and unresolved hostage situations.
