European markets: UK unemployment rises; Germany kicks off Uniper privatization

European stocks traded higher on Tuesday as investors assess the geopolitical landscape and developments in the Middle East.

The pan-European Stoxx 600 was up almost 0.7% by 1:00 p.m. in London (8:00 a.m. E.T.), with most regional sectors in positive territory, as major bourses in London, Paris, Frankfurt and Milan all notched gains.

The German government announced plans to re-privatize energy group Uniper, which was bailed out during the 2022 European energy crisis with a cost to the taxpayer of 13.5 billion euros ($15.71 billion).

The government, which owns a 99.12% stake in Uniper, on Tuesday announced its intention for the sale or a listing of the group in what could be one of the biggest European deals this year.

“We are now more stable, more resilient and more clearly positioned strategically. We have consistently aligned our business towards reliable earnings and have a strong balance sheet,” Uniper CEO Michael Lewis said on Tuesday.

The move sent Uniper shares some 4.8% higher in afternoon trade.

Elsewhere, defense stocks rallied after it was reported that Sweden will buy navy frigates from France in a move that will mark Sweden’s biggest military investment in decades. Swedish company Saab is being lined up to develop radar and weapons systems for the country’s naval capabilities.

Shares of Saab jumped 4.3% in afternoon dealmaking, while the regional Stoxx Aerospace and Defense index gained around 2.1%.