European stocks climbed on Tuesday after news of a landmark free trade agreement with India, which Prime Minister Narendra Modi dubbed the “mother of all deals.” The agreement, covering roughly a quarter of global GDP and about a third of global trade, lifted investor sentiment, even as market participants braced for a busy week of corporate earnings across the continent.
The Stoxx Europe 600 index finished the session higher, with most sectors and major exchanges recording gains. Yet, trade-sensitive areas showed a more mixed picture: chemical stocks slipped slightly, the auto sector saw a modest decline, and industrial shares posted modest gains. The varied performance reflected investors’ cautious assessment of how the EU-India pact might influence regional trade and corporate earnings.
Under the terms of the agreement, the EU is expected to ramp up exports of machinery, transport equipment, and chemicals to India, while imports of Indian machinery, chemicals, and fuels are set to rise. Analysts highlight that the deal’s scale and reach make it one of the most consequential in recent years, with the potential to reshape trade flows and strengthen long-term economic ties between the regions.
Corporate earnings remained in focus as well. Puma surged after China’s Anta Sports confirmed a €1.5 billion deal to acquire a 29% stake from France’s Pinault family. In contrast, Swedish medical equipment company Getinge declined after reporting slightly weaker-than-expected fourth-quarter orders. Investors also closely monitored updates from other major regional players, including Atlas Copco, Sandvik, and Logitech International, as earnings season continued to unfold.
