A specialist trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Sept. 15, 2025.
Brendan McDermid | Reuters
LONDON — European stocks closed higher on Tuesday as investors monitored U.S. President Donald Trump’s trade tariffs and the continued political deadlock in the United States.
The pan-European Stoxx 600 index ended the session up 0.5%, with the FTSE 100, the DAX, and the CAC 40 all finishing in positive territory.
Looking at individual stocks, shares of Danish jewelry giant Pandora ended down 2.6%, after the company said its CEO, Alexander Lacik, would retire in March. The firm’s Chief Marketing Officer Berta de Pablos-Barbier — a former LVMH executive — is set to replace him.
Meanwhile, shares of German airline group Lufthansa ended Tuesday 7.1% lower. The company announced on Monday that it would cut 4,000 jobs by 2030. Tuesday’s moves wiped out much of the gain the stock saw on Monday as investors reacted to Lufthansa’s Capital Markets Day, where the firm announced — alongside the staff cuts — plans to expand its aircraft fleet, as well as new medium-term financial targets including an adjusted EBIT margin of 8 to 10%.
In a note to clients on Tuesday morning, UBS analysts said Lufthansa “shares are attractive if financial targets can be met.”
“The margin target of 8-10% is more challenging than the previous medium-term target of 8% [but] we think that the 8% plus margin target is achievable,” they said.
Global investors were also keeping an eye on the tariff landscape after Trump said Monday that he would impose a 10% tariff on imported timber and lumber and an initial 25% duty on imported kitchen cabinets, bathroom vanities and upholstered furniture, before the tariff rate rises next year. Trump said such imports were threatening the U.S. economy and eroding national security.
A potential federal government shutdown will also be closely followed by international markets this week after top Democrats and Republicans met with Trump at the White House on Monday.
After the meeting, Vice President JD Vance said: “I think we’re headed to a shutdown because the Democrats won’t do the right thing.”
Although shutdowns aren’t usually market-moving events, this time could be different as investors are already wary about a slowing labor market, the risk of stagflation and elevated stock valuations.
A shutdown could also prompt rating agencies to rethink the status of U.S. credit, which was downgraded in May by Moody’s.
In other news, the U.K.’s Labour Party continues its annual conference in Liverpool on Tuesday with Prime Minister Keir Starmer warning in a keynote speech that the country stands “at a fork in the road” between renewal and decline. Finance Minister Rachel Reeves’ conference speech on Monday afternoon saw her give few clues away as to her plans for the Autumn Budget, in which she is expected to announce tax rises.
