European Shares Rise Amid Mixed Economic Signals

European shares saw an uptick after previous losses, despite caution due to impending U.S. tariffs. The STOXX 600 index gained 1%, buoyed by Germany’s fiscal measures and slowing U.S. growth. Healthcare and banks led sector gains, while inflation data and ECB comments are keenly anticipated.

European shares experienced a rebound on Tuesday following a decline in the previous session, with investors displaying cautious optimism despite forthcoming U.S. reciprocal tariffs. The pan-European STOXX 600 index rose by 1% as of 0710 GMT, buoyed by Germany's significant fiscal package and concerns over U.S. economic deceleration, which lured investors to European markets.

The upcoming pressure from a new round of U.S. reciprocal tariffs, expected to be announced by the White House on Wednesday, has kept details minimal, leading to cautious trading. Goldman Sachs has reacted by trimming its 12-month forecast for the European benchmark index to 570 points from the previous 580, highlighting the impact of heightened tariff tensions.

Investors will scrutinize euro zone inflation numbers closely after unexpectedly sharp drops in German inflation figures for March. Expectations are growing for the European Central Bank to adjust interest rates further. Meanwhile, all major European sectors advanced, notably healthcare and banks, with Bavarian Nordic's shares climbing nearly 2% after securing FDA approval for a novel freeze-dried vaccine formulation.

(With inputs from agencies.)