European Stocks Rise Near Six-Week Highs on Trade Deal Optimism

European stocks rose to multi-week highs driven by optimism around a potential EU-US trade agreement and solid earnings from major banks. The STOXX 600 and STOXX 50 indices gained modestly, with banking shares, including Deutsche Bank and BNP Paribas, performing particularly well after reporting better-than-expected profits. The European Central Bank held interest rates steady, signaling a cautious outlook on future monetary policy amid ongoing trade uncertainties and a strong euro. Investors have scaled back expectations for rate cuts this year following comments from ECB President Christine Lagarde emphasizing the need for more clarity on economic developments and trade impacts. Additionally, automakers surged on hopes of easing tariffs following trade deals, including a notable US-Japan agreement with a 15% tariff cap. Overall, investor sentiment remains positive as the EU and US appear close to finalizing a trade deal that could lower tariffs and support European markets.