European stocks rebounded on the first day of the quarter as investor focus remained on an expected tariff announcement from the US.

The Stoxx 600 gained 0.9% at 8:06 a.m. in London. AstraZeneca Plc rose 1.6% as its experimental cholesterol drug significantly reduced "bad" cholesterol in a mid-stage trial. 

US President Donald Trump will announce his reciprocal tariff push on Wednesday during an event in the White House Rose Garden, his top spokeswoman said, adding that the announcement would feature "country-based" levies. European sectors exposed to duties, such as autos, gained early on Tuesday. 

Health care and banking stocks also outperformed, while utilities were the biggest laggards. About 88% of Stoxx 600 constituents rose.

Europe's benchmark index just wrapped up its biggest-ever quarterly outperformance over the S&P 500 in dollar terms on optimism around higher fiscal spending and an improving economic outlook. But investors had turned more cautious in recent days as uncertainty around tariffs crept in.

Panmure Liberum strategist Joachim Klement said he expects the market to remain in a holding pattern ahead of the April 2 announcement. 

"Currently, it seems as if the UK and the EU will both be hit by tariffs, but the UK may get tariff relief later since it has a more balanced trade relationship with the US," Klement said. "This could ultimately benefit the UK economy and UK stocks, but we have to wait until Thursday to get more clarity. Until then, it is best to stay on the sidelines."

Goldman Sachs Group Inc. strategist Sharon Bell cut her 12-month target on the Stoxx 600, citing higher tariff assumptions and weaker growth forecasts.

Among other individual movers, Bavarian Nordic A/S advanced 2.4% as it won US FDA approval of its freeze-dried formulation of Jynneos vaccine for the prevention of smallpox and mpox in adults 18 years and older. 

Source: Bloomberg