Europe open: Shares rally despite looming US tariffs

(Sharecast News) - European shares rallied from the Trump tariff sell-off to post strong gains at the open on Tuesday as traders also awaited eurozone inflation data.

The pan-regional Stoxx 600 index was 1% in early deals at 539 points. Germany's DAX was up by the same amount and France's CAC-40 by 0.85%.

Investors continue to wait for the impact of swingeing tariffs from US President Donald Trump. Having already targeted the steel, aluminium and car industries, he then sparked another fall in equities by announcing that all countries would face reciprocal levies from April 2.

Despite the rebound, gold hit a new high of $3,148.8 per ounce as investors kept one eye on safe havens as Trump said he would be "very kind" to trading partners when he unveils further tariffs.

Stephen Innes managing partner at SPI Asset Management said April 2nd was "shaping up as one of the more layered market riddles in recent memory".

"The tariff rhetoric has reached full crescendo-deafening in volume, yet maddeningly vague in detail. Markets are flush with speculation, but real pricing clarity is missing in action, and the uncertainty premium is sky-high."

"Meanwhile, the Trump administration appears to be in its own state of flux-scrambling behind the scenes to finalize tomorrow's 'Liberation Day' tariff rollout. The internal tug-of-war? Whether to apply bespoke tariff rates for each trading partner (a softer, more nuanced approach) or unleash a campaign-era sledgehammer with broad-based across-the-board tariffs."

In equity news, shares in UK building supplier Travis Perkins tanked on slumping profits and a dividend cut.

Reporting by Frank Prenesti for Sharecast.com