European Markets Amid U.S. Tariff Turmoil

European shares rose despite U.S. tariff changes, with LVMH's slump highlighting trade war impacts. STOXX 600 climbed, but France's CAC 40 fell due to LVMH losses. Auto stocks rose after potential tariff modifications. Global markets remain rattled amidst ongoing tariff discussions, with ECB rate talks looming.

On Tuesday, European shares experienced an upward trend as investors contended with evolving U.S. tariff strategies. Nonetheless, LVMH shares plummeted due to disappointing first-quarter revenues, spotlighting the trade war's adverse effects on the luxury sector.

The STOXX 600 index rose almost 1% by 0802 GMT, with most regional indexes posting gains, except for France's CAC 40, hampered by LVMH's 7.7% decline. The luxury group's drop, its worst since March 2020, was driven by reduced consumer spending in the U.S. and stagnant sales in China.

The auto sector led the charge in gains, climbing 2.2%, following President Trump's indication of potential adjustments to auto tariffs. Despite temporary relief in electronics tariffs, market volatility persists amid ongoing tariff negotiations, with attention now turning to the European Central Bank's upcoming policy meeting.

(With inputs from agencies.)