Global markets higher

On Tuesday European stocks followed Asian peers higher, extending a rebound in risk assets after investors judged the selloff sparked by global trade fears as overdone. The dollar slipped, Treasuries edged higher and gold gained.

The Stoxx Europe 600 Index rose a second day, tracking advances across Asia as benchmarks from Hong Kong to Seoul clawed back losses incurred since U.S. President Donald Trump laid out a series of import tariffs last week. In the latest development, the European Commission proposed retaliatory measures on U.S. goods ranging from T-shirts and whiskey to motorcycles and ladders. The plans were limited in scope, targeting some 2.8 billion euros of merchandise, and the euro traded little changed.

The rebound in stocks suggests fears of an escalation of protectionism may be easing, even as Europe mulls its potential response to U.S. duties. Trump is facing domestic resistance to his planned levies on steel and aluminum imports.

Elsewhere, Bank of Japan Governor Haruhiko Kuroda appeared to dial back some of his recent perceived hawkishness. The Australian dollar pared gains as the central bank left interest rates unchanged and gave no indication an increase is coming soon. And in Italy, stocks and bonds rose as the country began the potentially lengthy process of forming a new government.

The Stoxx Europe 600 Index climbed 0.8 percent as of 10:37 a.m. London time. Futures on the S&P 500 Index rose 0.2 percent to the highest in a week. The MSCI Asia Pacific Index climbed 1.3 percent and the largest increase in almost three weeks. The U.K.’s FTSE 100 Index surged 1 percent, the biggest jump in more than three weeks. The MSCI Emerging Market Index climbed 1.4 percent, the largest increase in almost three weeks.

West Texas Intermediate crude rose 0.1 percent to $62.62 a barrel, the highest in a week. Gold climbed 0.3 percent to $1,324.63 an ounce, the highest in more than a week.