European Markets Rally Amid U.S.-China Trade Truce Extension

European shares experienced a rise on Tuesday, largely buoyed by an extension in the U.S.-China tariff truce which improved market sentiment. Investors are now awaiting U.S. inflation data to assess tariff impacts on price pressures and the future of monetary policy.

The pan-European STOXX 600 index advanced by 0.4% at 0710 GMT, with most regional markets trading positively. A 90-day extension of the tariff truce between Washington and Beijing has delayed three-digit tariffs until November 10, paving the way for a crucial meeting between U.S. President Donald Trump and Chinese President Xi Jinping later this year.

In other developments, former U.S. President Trump proposed both Kyiv and Moscow must compromise territory to end their conflict, prior to his scheduled meeting with Russian President Vladimir Putin. On the stock front, UBS shares dipped 0.9% post-investor selling, while Sartorius saw a 3.6% increase after receiving a ratings upgrade from Jefferies. Vestas Wind Systems rose 3.5% after announcing new orders in the U.S., and Spirax Group emerged as the biggest gainer after exceeding earnings expectations, climbing 16%.

(With inputs from agencies.)