European Markets Surge Despite Luxury Sector Woes

European shares rose as investors processed changes in U.S. tariffs, despite LVMH's disappointing first-quarter sales due to weak U.S. and China performance. The pan-European STOXX 600 gained ground, led by Italy's 2.4% rise. Markets anticipate potential ECB rate cuts amidst ongoing U.S. tariff tensions.

European markets saw an uptick on Tuesday as investors adapted to rapidly evolving U.S. tariff strategies. However, shares in luxury titan LVMH fell sharply after missing first-quarter sales targets due to lagging performance in the U.S. and China.

The pan-European STOXX 600 climbed 1.6%, with Italy's index outperforming others with a notable 2.4% lift. LVMH's slip by 7.8% resulted in its loss of the title as Europe's largest luxury firm to competitor Hermes, shaking the broader luxury sector.

Despite concerns, market sentiment received a boost from U.S. President Trump's potential easing of automotive tariffs. Yet, uncertainty looms large, with the European Central Bank's meeting on Thursday anticipated to announce further adjustments amid global economic jitters.

(With inputs from agencies.)