European Markets Respond Positively to Powell's Testimony

In a day marked by optimism, major European stock markets closed higher on Tuesday. This uptick came as Jerome Powell, the United States Federal Reserve Chairman, testified before the Committee on Banking, Housing, and Urban Affairs. Powell's reassurances that the Fed is not in a hurry to adjust its monetary policy and his insistence that the US is not in a recession played a key role in bolstering investor confidence.

Trump's Tariff Announcement

Adding to the day's significant financial news, US President Donald Trump signed an order to impose 25% tariffs on steel and aluminum imports, effective from March 4. This move is expected to have far-reaching implications for global trade dynamics.

Market Highlights

The DAX index saw a notable increase, closing 0.58% higher, with SAP SE leading the charge with a 2.41% surge. The Euro Stoxx 50 wasn't far behind, adding 0.61%, buoyed by Ferrari's impressive 3.40% gain. Meanwhile, the CAC 40 and FTSE 100 also enjoyed positive closes, with Societe Generale SA and Intertek Group PLC making significant gains.

Currency Movements

On the currency front, the euro and British pound both strengthened against the dollar, with the euro trading at $1.03482 and the pound at $1.24221 by late afternoon CET.