European Markets Bounce Back Amid Trade War Relief Hopes

In a significant turnaround, major European stock markets closed higher on Tuesday, breaking a four-day losing streak. The surge was fueled by optimism over potential negotiations between the United States and its trade partners regarding new tariffs. Investors welcomed the news, with US Treasury Secretary Scott Bessent highlighting President Trump's personal involvement in the talks, which could lead to a softer US trade policy.

Significant Gains Across Key Indices

The DAX led the charge with a 2.93% increase, buoyed by Siemens Energy's 5.48% jump. The Euro Stoxx 50 wasn't far behind, adding 2.86%, thanks to Adyen's 6.03% rise. France's CAC 40 and the UK's FTSE 100 also saw substantial gains, climbing 2.5% and 2.71% respectively, with Thales and Rolls-Royce Holdings making notable advances.

Swiss and Italian Markets Join the Rally

Switzerland's SMI and Italy's FTSE MIB weren't left out, with Lonza and Leonardo SpA spearheading the gains. Spain's IBEX 35 also traded positively, with International Consolidated Airlines Group leading the charge.

Currency Movements Reflect Market Optimism

The euro and pound sterling both gained against the dollar, further underscoring the day's positive sentiment in European markets.