European equity markets closed broadly higher on Tuesday, with several major indices reaching record levels as investor sentiment appeared resilient to recent geopolitical events. The pan-European Stoxx 600 index rose 0.6%, closing at an all-time high, while Spain's IBEX 35 also touched a record peak during the session.

The positive momentum was led by a surge in logistics firm InPost, which soared 26.8% to top the Stoxx 600 after announcing it had received an indicative takeover proposal for all its shares. The company cautioned that a transaction was not assured.

Semiconductor stocks continued their strong start to the year, buoyed by sustained demand related to artificial intelligence. Dutch chip equipment makers ASMI and BESI advanced 7.8% and 4.7%, respectively.

In the healthcare sector, Danish pharmaceutical giant Novo Nordisk closed nearly 5% higher following the U.S. launch of its Wegovy weight-loss pill on Monday, extending gains from the previous session.

The market's upward move suggests investors are currently looking past potential geopolitical friction, including the U.S. operation in Venezuela and renewed rhetoric from the Trump administration regarding Greenland. European leaders issued a collective statement pushing back against the idea of annexing Greenland, emphasizing that "The Kingdom of Denmark – including Greenland – is part of NATO" and that Arctic security is a collective endeavor.

Defense stocks, which rallied on Monday, saw further gains. Swedish aerospace and defense company Saab climbed 6.6%.

The buoyant mood in Europe mirrored a risk-on sentiment in other regions. Asian defense stocks rallied for a second day, and U.S. equities also traded higher, with the Dow Jones Industrial Average up nearly 0.5% at midday.