Market Insights – Follow-up
European stock markets culminated trading on Tuesday, March 18, with a noteworthy uptick, as investors turned their attention to a significant German debt reform agreement while also monitoring a key dialogue between U.S. President Donald Trump and Russian President Vladimir Putin.
The European Stoxx 600 index exhibited a rise of 3.36 points or 0.61%, closing at 554.30 points, driven by upward momentum across most sectors and major exchanges.
The German DAX index advanced by 226.14 points or 0.98%, finishing at 23,380.70 points, buoyed by gains in shares from prominent companies including Rheinmetall, Bayer, ThyssenKrupp, and Continental.
Simultaneously, the British FTSE 100 index saw an increase of 24.95 points, or 0.29%, closing at 8,705.23 points.
The French CAC 40 index also rose, up by 40.60 points or 0.50%, concluding at 8,114.57 points.
In a pivotal move, the German Parliament approved a substantial financial package aimed at reforming long-term debt rules, enabling an increase in defense spending, infrastructure investment, and the establishment of a climate fund totaling €500 billion (approximately $548 billion).
For the package to become law, it required support from over two-thirds of parliament members and must also receive approval from the Federal Council (Bundesrat) on Friday, as part of the constitutional process in Germany.
Holger Schmieding, Chief Economist at Berenberg, projects that Germany’s defense spending will increase by 0.2% to 0.3% of GDP annually over the next five years, with infrastructure-related expenditure expected to see similar annual growth during the same period.
Market participants are also closely scrutinizing the recent conversation between President Trump and President Putin, which transpired on Tuesday and reportedly spanned at least 90 minutes. While specific details remain under wraps, discussions focused on a potential 30-day ceasefire in Ukraine and Russia’s conditions for a temporary cessation of hostilities.
For continuous updates, subscribe to our channel on Telegram
