German DAX Hits Record High as European Markets Rally

European stock markets closed sharply higher on Tuesday, led by a surge in defense company shares. The region-wide STOXX 600 index rose 0.94%. Germany's DAX index was a standout performer, climbing 1.34% to close at a new all-time high. The UK's FTSE 100 also gained, adding 0.54%. The rally was primarily driven by strong performance in the defense sector. Investors moved money into these companies, which make military equipment, following new geopolitical tensions and government pledges to increase military spending. Analysts note that this investor behavior often happens during periods of international uncertainty. The broad market gains suggest a positive trading day across most major European economies.