European Shares Buoyed by U.S.-China Tariff Truce and Inflation Watch
European shares see a positive trend as a tariff truce between the U.S. and China extends, easing economic concerns. Investors remain attentive to U.S. inflation data, which could influence monetary policy. Meanwhile, geopolitical tensions and interest rate expectations also impact market dynamics, with varying performances across sectors.
European shares experienced a rise on Tuesday, buoyed by the extension of a U.S.-China tariff truce that has improved market sentiment. Investors are now focused on upcoming U.S. inflation data, set to provide insight into the tariffs' effects on price pressures and potential changes in monetary policy.
The pan-European STOXX 600 index increased by 0.2%, with Italy's FTSE MIB leading regional gains at 0.5%. Germany's DAX, however, saw a slight dip of 0.1%. The extension of the tariff truce between Washington and Beijing for 90 days has averted the imposition of heavy duties on traded goods, paving the way for a future meeting between U.S. President Donald Trump and China's President Xi Jinping.
In other developments, technological stocks suffered a decline, with Nvidia facing pressures due to Chinese restrictions. Meanwhile, notable performances included Spirax Group's 13% surge following strong results, and Vestas Wind Systems' 4.1% gain from U.S. orders. Conversely, Derwent London shares fell by 4.4% after reporting lower earnings.
(With inputs from agencies.)
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