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European stock markets edged higher on Tuesday as investors focused on a pivotal vote in the German parliament on debt reform and awaited developments in the Ukraine peace process, with U.S. President Donald Trump set to speak with Russian President Vladimir Putin later in the session.
As of 04:02 ET (08:02 GMT):
- Germany’s DAX rose 0.1%
- France’s CAC 40 gained 0.1%
- UK’s FTSE 100 edged up 0.1%
Germany’s Debt Reform Vote in Focus
Germany’s lower house of parliament is set to vote Tuesday on a historic borrowing expansion aimed at funding increased defense spending and stimulating the country’s economy.
The proposed legislation requires a two-thirds majority to pass and would alter the constitutionally enshrined debt limits, allowing for increased security spending and the creation of a €500 billion infrastructure fund.
If approved by the Bundestag (lower house), the bill would then move to the Bundesrat (upper house), where Germany’s 16 federal states are represented.
Market optimism around Germany’s fiscal reset has driven strong capital inflows into European equities, with the DAX surging over 16% year to date.
Trump-Putin Peace Talks on Ukraine
Investors are also closely monitoring an expected phone call between Trump and Putin later Tuesday, as the U.S. president seeks to negotiate a ceasefire in Russia’s three-year war with Ukraine.
Ukraine has already agreed to a U.S.-proposed 30-day truce, and Trump aims to secure a similar commitment from Putin to pave the way for permanent peace talks.
Trump has hinted that a longer-term peace plan could involve territorial concessions by Kyiv and negotiations over control of a key nuclear power plant.
Corporate Highlights
- Fraport (ETR: FRAG) posted record-breaking revenue and profits in 2024 despite economic and regulatory challenges. The German airport operator benefited from strong passenger traffic and pricing adjustments across its Frankfurt hub and global operations.
- Computacenter (LON: CCC) saw a mixed performance in 2024, with a sharp first-half decline followed by a strong recovery in the second half as demand for technology and IT services rebounded.
