European stocks rose Tuesday, with investors digesting the meeting between U.S. President Donald Trump and Ukraine President Volodymyr Zelensky in Washington.

The DAX index in Germany gained 0.5%, the CAC 40 in France rose 1.2% and the FTSE 100 in the U.K. increased 0.4%.

Rising peace optimism Sentiment received a boost Tuesday after a meeting between the presidents of the U.S. and Ukraine ended relatively positively, with both sides hopeful of the future.

Trump said that the U.S. would help guarantee Ukraine's security, but did not specify the terms of any guarantees. He also raised the possibility of trilateral talks, also including Russian President Vladimir Putin, following a meeting with Putin in Alaska last week.

Still, a peace deal appears far from imminent, especially given that Putin has shown little indication of agreeing to a ceasefire. In fact, Ukraine's air force said on Tuesday that Russia launched 270 drones and 10 missiles overnight in one of its largest attacks this month.

The most significant sticking point is the land that Russia has occupied in fighting, which Ukraine wants back. The Russian leader reportedly wants Ukraine to hand over the remainder of the Donbas region to Moscow to end the war, something Zelensky will be very reluctant to do.

The conflict has raged for over three years, and has severely disrupted the global supply chain, resulting in inflated commodity prices and a hit to global economic growth.

Lagarde, Bailey head to Jackson Hole The European economic data slate is largely empty on Tuesday, and most attention will be on the Federal Reserve's Jackson Hole symposium this week.

Chairman Jerome Powell is set to speak on Friday, while ECB President Christine Lagarde and Bank of England Governor Andrew Bailey are also on panel discussions.

European defence stocks weaken Back in Europe, the defense sector was hit on Tuesday after the talks in Washington raised hopes of peace in Ukraine.

German tank parts manufacturer Renk (ETR:R3NK), Sweden's Saab (ST:SAABb) and Italian defense giant Leonardo (BIT:LDOF) all traded sharply lower.

On the flip side, luxury stocks received a boost with Moncler (BIT:MONC) and Burberry (LON:BRBY) adding about 3% each.

Elsewhere, Swiss connectivity solutions provider Huber+suhner (SIX:HUBN) AG posted an 8.5% increase in operating profit for the first half of 2025, lifted by demand in aerospace, defense and data centers that offset geopolitical uncertainty and trade pressures.

Coloplast (CSE:COLOb) said its net profit fell 26% in the first nine months of its 2024/25 financial year, as extraordinary tax expenses tied to its Kerecis unit outweighed sales and operating growth.

International Workplace (LON:IWG) reported record system-wide revenue of $2.2 billion for the first half of 2025, up 2% from a year earlier.

Source: Investing.com