European stocks edge higher; tariffs uncertainty limits gains

 European stock markets edged higher Tuesday, but gains are limited amid continued uncertainty over the scope and breadth of U.S. President Donald Trump’s trade tariffs.

At 04:05 ET (08:05 GMT), the DAX index in Germany climbed 0.3%, the CAC 40 in France gained 0.4% and the FTSE 100 in the UK rose 0.4%.

Trade tariffs uncertainty 

European equity indices started the new week on a positive note after press reports raised hopes for narrower-than-feared U.S. tariffs, but substantial gains are proving hard to find, with investors still uncertain over what comes next.

Weekend reports showed Trump will likely target a group of 15 countries with perceived trade imbalances with the U.S. for his reciprocal tariffs, helping ease some concerns over broad-based tariffs.

However, the U.S. president said Monday that he will impose tariffs on automobiles, pharmaceuticals, and aluminum in the “very near future,” and said duties on lumber and semiconductors will follow down the road.

German Ifo survey due 

Back in Europe,  the economic calendar is pretty sparse, with the German business climate survey for March from the Ifo institute the one major release.

The largest economy in the eurozone has been in the doldrums for some time, but data released on Monday showed that Germany’s private sector grew at the quickest pace in 10 months on hopes that a massive increase in government spending will outweigh any hit from U.S. tariffs.

Shell raises shareholder distribution

In the corporate sector, energy giant Shell (LON:SHEL) increased its shareholder distribution policy to 40%-50% of cash flow from operations from 30%-40% with a focus on share buybacks, and lowered its spending outlook to a $20 billion-$22 billion range through to 2028.