European Shares Climb After US Tariff Delay Boosts Market Confidence

European shares advanced due to US delaying the imposition of 50% tariffs on EU goods. Trump's trade policy maneuvers have kept investors on edge, but markets seem accustomed to these changes. Key indices, such as FTSE 100 and Germany's DAX, showed gains, further aided by Japan's anticipated rate hikes.

European shares saw an uptick on Tuesday as the United States postponed a proposed 50% tariff on goods from the European Union, instilling market confidence. This decision came after President Trump previously asserted that trade discussions with the EU were stagnant.

The market response was mostly positive, with major indices like the FTSE 100 in London rising by 1.1%, and Germany's DAX gaining 0.7%. Across the globe, Asian markets showed mixed reactions, with Japan's Nikkei securing a 0.5% increase, bolstering gains as the country's central bank signals potential interest rate hikes.

Amid cautious optimism, experts like Stephen Innes noted that investor reactions to Trump's trade policies have grown familiar, reducing panic sell-offs. This comes as US stocks recently experienced a downturn, hinting that markets may be adjusting to America's negotiating tactics.

(With inputs from agencies.)