European Markets Close Higher on Strong Corporate Earnings Amid Geopolitical Concerns

European stock markets have generally closed higher amid a backdrop of easing US-China trade tensions and strong corporate earnings across multiple sectors. The EU adopted a significant 19th package of sanctions against Russia, including a ban on Russian liquefied natural gas imports, which has influenced market dynamics. Key sectors driving gains include defense, with companies like Leonardo, Airbus SE, and Thales planning new collaborations, and utilities, with Eni and A2A posting notable share gains. However, some companies such as STMicroelectronics faced sharp declines due to slowing growth and disappointing profits. Market sentiment was further supported by expectations of resolutions to geopolitical conflicts and government shutdown concerns, although challenges remain, including widened UK budget deficits and falling commodity prices impacting mining stocks. Overall, investors remain focused on upcoming earnings reports from major European firms while cautiously navigating geopolitical and economic uncertainties.