European Markets Rally on Positive IMF Outlook

Major European stock indexes closed higher on Tuesday, buoyed by the International Monetary Fund (IMF)'s revised economic outlook for the Eurozone, now projecting a 1% growth for 2025. This optimistic forecast has injected confidence into the markets, despite warnings from Gabriel Makhlouf, a member of the European Central Bank (ECB) Governing Council, about potential dampening effects from recent US-EU trade agreements.

Corporate Earnings in the Spotlight

Following the footsteps of AstraZeneca PLC and Barclays plc, Spotify Technology S.A. reported a significant 11% increase in monthly active users, reaching 696 million. These earnings reports have further fueled the market's upward trajectory.

Index Performances and Currency Movements

The German DAX rose by 1.03%, with Rheinmetall AG leading the charge with a 3.58% climb. The CAC 40 and Euro Stoxx 50 saw gains of 0.72% and 0.75% respectively, with EssilorLuxottica emerging as the top performer. Meanwhile, the FTSE 100 added 0.60%, bolstered by Games Workshop's 5.44% jump. On the currency front, the euro and British pound saw slight declines against the dollar.