European stocks rise on U.S.-China tariff truce

The DAX index in Germany climbed 0.3%, the CAC 40 in France gained 0.5% and the FTSE 100 in the U.K. rose 0.4%

European stocks rose Tuesday, buoyed by the news of a U.S.-China tariff truce extension, as investors awaited the release of key U.S. inflation data.

At 07:10 GMT, the DAX index in Germany climbed 0.3%, the CAC 40 in France gained 0.5% and the FTSE 100 in the U.K. rose 0.4%.

Global investors remained focused on the Trump administration’s tariffs, and sentiment received a boost after the U.S. and China extended their tariff truce late on Monday for another 90 days, averting sharp duties that could have disrupted trade.

The move will see the world’s biggest economies keep relatively lower tariffs in place against each other until November 10, and will also keep in place a recent reopening in U.S. chip exports and Chinese rare earths.

U.S. tariffs on China will remain between 30% and 50%, while Chinese tariffs on U.S. goods will be around 10% to 20%. The two had agreed in May to slash their tariff levels from over 100%.

European investors will study the release of the Germany ZEW economic sentiment for August later in the session for clues about the health of the eurozone’s largest economy.

Earlier in the session, data showed that the U.K. unemployment rate stayed at 4.7% in the three months to June, the highest level since July 2021, while pay growth across the whole economy, excluding bonuses, remained at an annual 5.0% rate.

The day’s key economic release, however, will be the U.S. consumer inflation report for July, as investors attempt to better understand the impact of Trump’s tariffs and how that influences the Federal Reserve’s rate cut path.

The annual CPI figure is forecast to rise to 2.8% from 2.7% in June, remaining stubbornly above the Fed’s stated 2% target.