Headlines
European shares gain on renewable energy, luxury boost
Published by Global Banking & Finance Review®
Posted on July 2, 2025
3 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 2, 2025
3 min readLast updated: January 23, 2026
European shares rose, driven by renewable energy and luxury gains. The STOXX 600 index increased by 0.2%, with French stocks leading. U.S. policy changes favored renewables, while trade talks continue.
By Sukriti Gupta, Sanchayaita Roy and Shashwat Chauhan
(Reuters) -European shares ended higher on Wednesday, led by renewable-energy stocks after a revised budget bill in the United States passed a crucial vote, while focus was on any trade deals ahead of U.S. President Donald Trump's July 9 tariff deadline.
The pan-European STOXX 600 index closed 0.2% higher. French equities were among the top gainers in the region with a 1% jump.
Paris-listed shares of luxury giant LVMH, Italy's Moncler and UK's Burberry all climbed about 4% each, among the top boosts on the STOXX 600.
Swiss bank UBS lifted its rating on European luxury to "benchmark" from "underweight," arguing the recent share underperformance has created a tactical opportunity despite ongoing risks in China.
Mining-related stocks topped the STOXX sub-sectors, with steelmakers including ArcelorMittal and Thyssenkrupp advancing the most.
Auto stocks climbed 1.6%, while euro zone banks added 1.5%.
Shares in European renewable energy companies rose after the U.S. Senate passed a revised budget bill that was more positive for the wind industry compared to an earlier version.
"This policy shift, coupled with the resumption of construction work on Equinor's Empire Wind project off the New York coast, suggests that the worst-case scenario for the renewables sector under the Trump administration may not materialise," said Tancrede Fulop, senior equity analyst at Morningstar.
Vestas advanced 10.1% and was the top gainer in the STOXX 600. Orsted gained 1.8%.
On the downside, a slate of UK-listed companies were at the bottom of the STOXX 600, while the local midcap index, which is more sensitive to domestic developments, dropped 1.3%.
The pound, along with British stocks and bonds dropped after a tearful appearance by Chancellor Rachel Reeves in parliament a day after the government backed down on its welfare reforms reigniting concern over Britain's finances.
In the latest on global trade negotiations, Trump said the United States has struck a trade deal with Vietnam.
Trump on Tuesday had said he was not considering an extension of the July 9 deadline for countries to negotiate trade deals with the United States.
Meanwhile, the European Union's trade chief is expected to hold negotiations this week in Washington to avert higher U.S. tariffs.
Back in stocks, Greggs slid 15.2% after the British baker warned its annual operating profit could dip below last year's levels.
Spain's Banco Sabadell gained 5.2% after Santander said it had reached an agreement to buy its British unit TSB.
(Reporting by Sukriti Gupta, Sanchayaita Roy and Shashwat Chauhan in Bengaluru; Additional reporting by Medha Singh; Editing by Vijay Kishore and Chris Reese)
European shares ended higher, primarily driven by gains in renewable-energy stocks and luxury brands after a revised budget bill in the United States passed a crucial vote.
Paris-listed shares of luxury giant LVMH, Italy's Moncler, and the UK's Burberry all climbed about 4% each, contributing significantly to the gains on the STOXX 600.
Euro zone banks added 1.5% to their value, reflecting a positive trend in the banking sector amidst the overall market gains.
Shares in European renewable energy companies rose after the U.S. Senate passed a revised budget bill that was more favorable for the wind industry compared to an earlier version.
A number of UK-listed companies were at the bottom of the STOXX 600, with the local midcap index dropping 1.3% due to domestic developments and concerns about welfare reforms.
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