European stocks rise after German spending bill approval

European stocks continued to rise for a third consecutive day after a significant vote in Germany. Lawmakers approved a bill that could lead to hundreds of billions of euros in new spending on defense and infrastructure projects. The Stoxx Europe 600 Index closed up by 0.6%. This puts the index just 1.6% below its all-time high earlier this month. Analysts believe this is shaping up to be the best first quarter for European stocks since 2019. The bill now awaits final approval from the upper house, known as the Bundesrat, scheduled for Friday. German stocks led the gains, with the DAX Index increasing by 1%. Defense companies performed well, particularly Thyssenkrupp AG, which saw its shares rise by 13%. Other sectors, including energy and banking, also recorded gains. Market experts see this as a sign of broader economic stimulus in Europe. Stephane Boujnah, CEO of Euronext, mentioned that infrastructure investments in Germany and military projects throughout Europe will positively impact economic growth. Meanwhile, investors have been retreating from U.S. stocks, marking one of the largest withdrawals on record. The S&P 500 has dropped 4.7% since the start of the year, while European stocks have gained 9.2%. Raphael Thuin from Tikehau Capital noted that concerns about future U.S. tariffs are influencing investment decisions as global investors seek opportunities beyond the slowing U.S. economy.