European Shares Climb Amid U.S.-China Tariff Truce and Federal Reserve Optimism

European shares witnessed a positive close on Tuesday, underpinned by restored optimism surrounding the U.S.-China trade discussions and prospective interest rate reductions from the Federal Reserve. Despite these gains, a notable dip in technology stocks tempered the overall market performance.

The renewed investor confidence stemmed from the 90-day extension of the tariff truce between Washington and Beijing, which temporarily averted significant economic disruptions. "Equity markets have shown resilience in the face of trade uncertainties," commented Rob Perrone of Orbis Investments on the prevailing market sentiment.

While most sectors saw an uptick, energy led the charge with a 1.5% increase, spurred by robust performances from companies like Vestas Wind Systems. However, tech heavyweights saw notable declines, with SAP and Nemetschek SE experiencing steep losses amid concerns about artificial intelligence's potential impact on the sector.

(With inputs from agencies.)