(Reuters) – European shares rose on Tuesday following a pullback in the previous session, although the mood remained cautious ahead of the impending U.S. reciprocal tariffs set to take effect.
The pan-European STOXX 600 index was up 1%, as of 0710 GMT, after closing the books on a strong quarter as Germany’s historic fiscal package and the prospects of slowing U.S. economic growth attracted investors to the region.
The White House is due to announce on Wednesday a new round of reciprocal levies, although details have been scarce.
Fears that an escalating trade war would cause a global economic slowdown prompted a flight from risky assets on Monday, pushing STOXX 600 to its lowest point in more than two months.
Goldman Sachs on Tuesday cut its 12-month forecast for the European benchmark index to 570 points from 580 earlier due to U.S. tariff impact.
Investors will also assess the euro zone’s inflation numbers on Tuesday, a day after data showed that German inflation fell more than expected in March, bolstering the case for the European Central Bank to further cut interest rates.
Comments from ECB President Christine Lagarde and board member Philip Lane are also awaited.
All major European sectors advanced, with healthcare and banks leading the charge.
Shares of Bavarian Nordic rose nearly 2% after the Danish biotechnology company said the U.S. Food and Drug Administration has approved a freeze-dried formulation of its mpox and smallpox vaccine.
(Reporting by Medha Singh and Sukriti Gupta in Bengaluru; Editing by Sherry Jacob-Phillips)
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