European markets closed higher on Tuesday as investors continued to assess the scope and breadth of U.S. President Donald Trump's trade tariffs.

The pan-European Stoxx 600 index closed 0.67% higher, with most sectors and all major bourses in positive territory.
Germany's DAX
led regional gains, up 1.13%, after a survey showed improved business sentiment in the conuntry. German biotech firm Bayer
rose more than 5%, recovering from a 7% loss in the previous session after announcing over the weekend that it had been ordered by a U.S. court to pay $2.1 billion in damages relating to its Roundup weed killer.

German software giant SAP meanwhile extended its newly-held position as Europe's most valuable company, up 1.3%. The company on Monday overtook Denmark's Novo Nordisk in market capitalization, as investors bet on its ability to boost revenue amid the AI boom.

Elsewhere, British oil major Shell gained 1.5% after announcing plans to boost investor returns, cut spending and double down on its liquified natural gas (LNG) push.
The autos sector ended 0.6% higher after Trump announced plans on Monday to implement tariffs on automobiles and a host of other sectors including the pharmaceuticals, lumber, and semiconductor industries.

Asia-Pacific markets traded mixed on Tuesday, while U.S. stocks opened slightly higher after the three key Wall Street indexes logged gains on Monday.

Wall Street remains on edge over a potential uptick in inflation and slowing economic growth as it awaits reciprocal tariffs from the Trump administration on April 2.

Source: CNBC