European Markets Recover After Tariff-Induced Sell-Off

European stock markets rebounded on Tuesday after a four-day losing streak, with the pan-European Stoxx 600 rising around 1%, driven by optimism despite ongoing tariff tensions. The recovery followed a significant decline on Monday, where the index closed down 4.5%, marking its lowest level since January 2024, as fears of a global trade war persisted. Key indices such as the FTSE 100, DAX, and CAC 40 also experienced losses, but early trading on Tuesday showed gains across all major sectors. Investors reacted positively to potential negotiations, as EU officials proposed a 'zero-for-zero' tariffs deal to the U.S., although President Trump dismissed the offer. Concurrently, the Chinese government vowed to take countermeasures against U.S. tariff threats, indicating escalating tensions. Despite these challenges, Asian markets also showed signs of recovery, suggesting a complex but cautious optimism among global investors.