European Markets Surge as U.S.-China Tariff Truce Sparks Optimism

European shares began the week positively after the U.S. and China agreed to reduce tariffs, alleviating global market strains caused by the trade war. Key indices rose, with notable gains in sectors such as sportswear and logistics. The deal signaled easing tensions, boosting confidence in equity markets.

European shares opened the week with gains after an agreement between the United States and China to temporarily cut tariffs renewed market optimism amid the ongoing trade dispute.

The U.S. will decrease tariffs on Chinese goods from 145% to 30%, while China will lower tariffs on U.S. imports from 125% to 10%, effective for 90 days. This development drove the pan-European STOXX 600 index up by 1.2% and lifted regional markets in Germany and the UK.

Investor confidence gained ground following positive remarks from ECB officials, as the agreement alleviated fears of stringent economic measures. Stocks in sectors such as sportswear and logistics recorded substantial gains, while healthcare stocks rebounded after earlier losses.

(With inputs from agencies.)