European Markets Rally as US‑China Trade Truce and Strong US Data Boost Investor Sentiment

European Shares Rally Amid US‑China Trade Truce and Fed Rate Cut Outlook

European equities climbed on Tuesday, buoyed by optimism that a 90‑day tariff pause between the United States and China will stave off three‑digit duties on mutual goods, and by expectations that the Federal Reserve may lower its benchmark interest rate next month once the latest inflation data confirm the well‑established July‑consensus.

STOXX 600 Overshoots 0.21%

The pan‑European STOXX 600 index closed 0.21% higher at 547.89 points, the first up session after a weak start to the week. Investors were relieved as Washington and Beijing extended the trade truce, ensuring that duties will be deferred until 10 November.

Leading Sectors

• Energy surged 1.5% as Vestas Wind Systems gained 4.7% after securing undisclosed U.S. projects.
• Technology fell 2.1%, the strongest slide for the sector since the beginning of May. Software stocks were sharply hit as fears grew that artificial intelligence could erode this technology segment.

Federal Reserve Path to Rate Cut

Meeting the July inflation expectations—US data showed a broad rise—set the Fed on a course to reduce the target rate next month. Traders watched the Fed meeting scheduled for Friday, where Donald Trump will meet Vladimir Putin to discuss Russia’s war in Ukraine.

Global Market Snapshot

• Financial Times Index +0.20% at 9,147.81 points.
• DAX –0.23% at 24,024.78 points.
• CAC‑40 +0.71% at 7,753.42 points.
• FTSE/MIB +0.85% at 41,935.42 points.
• IBEX‑35 +0.02% at 14,859.00 points.
• PSI20 +0.13% at 7,754.94 points.

European leaders and Ukrainian President Volodymyr Zelenskiy plan to speak with Trump on Wednesday amid concerns that Washington may impose unfavorable peace terms on Kyiv.