European shares edged higher on Tuesday as investors weighed the possibility of a peace deal between Russia and Ukraine following encouraging diplomatic signals after a White House meeting with European leaders.
The pan-European STOXX 600 index was up 0.1%, as of 0708 GMT, with most major regional bourses in the green.
US President Donald Trump told his Ukrainian counterpart Volodymyr Zelenskiy that Washington would help guarantee Ukraine’s security in any peace deal to end Russia’s war there, though the extent of any assistance was not immediately clear.
The pledge followed a White House meeting with European leaders, with formal guarantees expected to be finalised within the next 10 days.
German Chancellor Friedrich Merz said that Zelenskiy and Russian President Vladimir Putin would meet within the next two weeks, followed by Trump extending a three-way meeting afterward to begin negotiations.
Defence stocks dropped 0.7%, pressured by news of a potential Ukraine-Russia summit, as hopes for de-escalation reduced demand for military-related assets.
Shares of Renk Group, Rheinmetall and Hensoldt slipped between 1.9% and 3.2%.
Merck fell marginally after Barclays downgraded the company’s rating to “equal weight” from “overweight”.
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