European shares rebounded on Tuesday, with the Stoxx 50 and Stoxx 600 rising about 0.2%, supported by broader market gains and cautious optimism among investors.
European stocks edge higher ahead inflation
The uptick came as market participants kept a close eye on U.S. trade policy developments, spurred by a hint of progress after the White House indicated that Presidents Trump and Xi Jinping may hold a phone call this week. This potential dialogue offered some relief amid escalating trade tensions, though underlying uncertainty remained high.
Caution persisted as investors grappled with President Trump’s unpredictable tariff strategies, which have continued to unsettle global markets. Adding to the complexity, the U.S. administration requested an appeals court to pause a recent ruling that could block the implementation of new tariffs, signaling a firm stance on trade enforcement. Meanwhile, Washington urged other countries to submit their trade proposals by Wednesday, emphasizing ongoing negotiations and the hope for some resolution.
Eyes on upcomunig economic events
In Europe, investor focus shifted to key upcoming economic events, including euro zone inflation data and the European Central Bank’s interest rate decision slated for later in the week. These events are expected to provide critical guidance on the region’s economic outlook and monetary policy direction amid persistent inflation concerns.
On the corporate front, Swiss banking giant UBS surged 3.3% after Jefferies upgraded its rating to "buy," reflecting renewed confidence in its strategic positioning and growth prospects. In contrast, Julius Baer shares declined 1.9% following the announcement of new cost-cutting measures amounting to 130 million Swiss francs by 2028, highlighting efforts to improve efficiency but also signaling operational challenges ahead. Overall, the market displayed a tentative recovery mood, balanced by ongoing geopolitical and economic uncertainties.
