European Shares Bounce Back Amid Tariff Speculation

European shares partially recovered losses, buoyed by rumors of gradual U.S. tariff hikes by President-elect Donald Trump. The STOXX 600 index rose, driven by gains in automobiles, technology, and euro zone lenders. Meanwhile, French reforms and shifts in stocks like Ocado influenced broader market movements.

In a modest rebound, European shares recouped some recent losses on Tuesday following reports suggesting that U.S. President-elect Donald Trump might pursue a phased approach to implementing tariffs, prompting gains in sectors such as automobiles.

The pan-European STOXX 600 index climbed by 0.5% by mid-morning, recovering from a 1.4% slide over the last two sessions. The advance was attributed to a Bloomberg report indicating discussions within Trump's economic team about gradually increasing tariffs, leading to a cautious optimism among investors.

The impact rippled through various sectors; automobiles witnessed a surge of 1.5%, technology stocks rose by 1.2%, and euro zone lenders gained 1.7%. Yet, oil and gas stocks were down, with BP taking a hit due to a forecast of reduced fourth-quarter profits. Amidst these shifts, Ocado Group's shares soared after reporting robust sales growth.

(With inputs from agencies.)