Europe Markets

European markets close sharply higher on recovery hopes, despite backdrop of U.S. unrest; DAX up 3.8%

Key Points
  • U.S. President Donald Trump threatened to deploy the military if states and cities failed to quell the demonstrations sparked by the killing of George Floyd.
  • Germany's DAX index was a significant driver of Tuesday's European gains, closing up by 3.8% and enjoying its best day for almost two months.

European stocks closed sharply higher Tuesday against a backdrop of unrest and violence in the U.S. as protests continue over the killing of George Floyd, an unarmed black man, in police custody last week.

The pan-European Stoxx 600 closed 1.5% higher provisionally as the reopening of economies and hopes for a global recovery continued to drive market sentiment. Auto stocks jumped 3.8% to lead gains as all sectors except health care remained in positive territory.

Germany's DAX index was a significant driver of the gains in Europe, closing up by 3.8% and enjoying its best day for almost two months.

The positive momentum comes despite escalating developments in the U.S., after President Donald Trump threatened to deploy the military if states and cities failed to quell the demonstrations sparked by the killing of Floyd.

On Wall Street on Tuesday, stocks were little changed as traders grappled with civil unrest around the country along with the reopening of the economy from the coronavirus pandemic.  

Biggest movers

British property developer Hammerson soared 35% after announcing that its sites will reopen from June 15.

Luxembourg real estate company Aroundtown climbed 11% after the resolution of a share buyback. Unibail-Rodamco-Westfield shares added more than 9% as its retail stores continue to open up.

At the bottom of the European blue chip index, pharmaceutical and biotechnology companies Tecan and Biomerieux both fell 5%. Health was the only European sector in the red Tuesday.

—CNBC's Christina Wilkie and Amanda Macias contributed reporting to this story.