- Baloise gains after results, lifts insurer sector
- Energy stocks track oil prices higher after Venezuela tariffs
- German business sentiment rises in March, Ifo survey shows
- STOXX 600 up 0.4%
March 25 (Reuters) - European shares rose on Tuesday after a German survey indicated business sentiment improved in the region's largest economy, days after a historic debt deal aimed at boosting stagnating growth.
The pan-European STOXX 600 index was up 0.4% at 0910 GMT. Most regional stocks markets rose, led by a 0.9% gain in Spanish stocks , followed by an 0.8% advance in French shares .
Energy stocks jumped 1.1% as oil prices firmed for the fifth day on supply concerns after the U.S. announced tariffs on countries that buy Venezuelan crude.
Swiss insurer Baloise advanced 6% to the top of the STOXX 600 after reporting a 60.6% surge in its 2024 profit. The broader insurers index firmed about 1%.
A survey from Munich-based Ifo Institute showed the business climate index rose to 86.7 in March, in line with economists' forecast, up from 85.2 the previous month.
Germany's plans to invest hundreds of billions of euros in defence and infrastructure have led to upgrades for the euro zone economy, contributing to European equities outperforming their U.S. counterparts so far this year.
Investors are also keeping an eye on U.S. trade policy that has roiled global markets.
U.S. President Donald Trump said on Monday not all of his threatened levies would be imposed on April 2 and some countries may get breaks, sparking a rotation into battered U.S. stocks, while European equities ended largely flat.
"Market trends have become more short-term in nature, and a clear direction remains elusive at this time. Compounding this uncertainty is the U.S. government's deliberate vagueness in its announcements regarding tariff policy," said Jochen Stanzl, chief market analyst at CMC Markets.
"With details being scarce, investors are left in a state of heightened caution, which further fuels the trend towards short-term trading strategies."
Highlighting corporate pain, Swiss logistics group Kuehne und Nagel warned its full-year operating profit could be lower than analysts' expectations due to global economic uncertainty. Its shares fell 3.8%.
Home improvement retailer Kingfisher tumbled 12% after reporting a 7% fall in annual profit, reflecting weak demand for more discretionary 'big-ticket' categories.
Investors are also monitoring talks between Ukrainian and U.S. delegations in Saudi Arabia following Russia-U.S. talks there a day earlier on a limited Black Sea ceasefire proposal that Washington hopes will open the way for broader peace negotiations.
Reporting by Medha Singh in Bengaluru; Editing by Sherry Jacob-Phillips and Sonia Cheema
Source: Reuters