European Stocks Rebound 2.67% on Central Bank Hopes

European stocks experienced a significant rebound on Tuesday, with the pan-European STOXX 600 index closing up 2.67%. This marked the end of a four-day losing streak, during which the index had fallen over 12% in the previous four trading sessions. The UK's FTSE 100 index also saw a notable increase, closing up 2.44%. Similarly, Germany's DAX index and France's CAC 40 index both gained 2.36%.

The rebound was driven by investor optimism that the recent sell-off may have reached a bottom. This sentiment was fueled by hopes that central banks might take further easing measures to support economic growth. The European Central Bank has already indicated its readiness to provide additional stimulus if necessary, and investors are anticipating that other central banks may follow suit. This optimism helped to lift the market out of its recent downturn.

The market's focus remained on the potential impact of U.S. tariffs on global trade and the responses from various governments. Investors are closely monitoring the situation, as the outcome could have significant implications for the global economy. The UK's FTSE 100 index closed at 7,910 points, up 208 points or 2.71%, while France's CAC 40 index finished at 7,100 points, up 173 points or 2.5%. These gains reflect the market's positive outlook and its anticipation of further central bank support.