European Shares Rebound Amid U.S. Tariff Tensions

European shares saw a rebound after recent losses, driven by healthcare stocks, while investor caution prevailed due to looming U.S. tariffs. The STOXX 600 index rose amid broader sector gains, notwithstanding fears of a global economic slowdown. Economic data and ECB comments are under close scrutiny.

European shares bounced back on Tuesday from a two-month low, driven by gains in healthcare stocks, signaling cautious optimism despite looming U.S. tariffs. The broader market saw a rise, with defensive sectors leading, while investor sentiment remained edgy.

Following a 1.5% drop in the previous session, the pan-European STOXX 600 index added 0.6%, with Novo Nordisk's 2.1% rise marking a notable contribution. This recovery comes amid concerns that upcoming U.S. levies could slow global economic growth.

Meanwhile, Germany's fiscal measures and potential impacts on company profits are under scrutiny. Analysts, including those from Goldman Sachs, have expressed a slightly downgraded outlook. Euro zone's manufacturing showed positive signs, and inflation data is awaited, alongside key ECB communications.

(With inputs from agencies.)