European stocks rally

On Tuesday European stocks rallied, tracking gains across Asia as investors began to recalibrate the chances of an all-out global trade war. The dollar strengthened as both the pound and euro retreated, while Treasuries steadied.

The Stoxx Europe 600 Index jumped the most in six weeks as every sector advanced. U.S. equity futures built on a Monday rally that saw the S&P 500 Index post its biggest one-day jump since August 2015. They were given a helping hand by a tweet from President Donald Trump that trade talks are going on and “all will be happy.” The euro weakened as economic confidence in the region continued its slide in March.

Earlier in Asia shares were green across the board, with Japan’s Topix Index jumping the most since November 2016.

The resurgence in risk appetite developed as the Trump administration was said to be urging China to lower tariffs on cars and open its market to U.S. financial services as part of talks to resolve trade tensions. Treasury Secretary Steven Mnuchin and his Chinese counterpart have been discussing the trade deficit between the two countries and were committed to finding a mutually agreeable way to reduce the gap and help China avoid tariffs on $50 billion of exports to the U.S.

The Stoxx Europe 600 Index climbed 1.5 percent as of 10:33 a.m. London time, the first advance in a week and the largest increase in almost seven weeks. The MSCI All-Country World Index climbed 0.6 percent. The U.K.’s FTSE 100 Index climbed 1.9 percent, the first advance in a week and the largest increase in almost seven weeks. Germany’s DAX Index surged 2 percent, the biggest jump in 11 months.

West Texas Intermediate crude increased 0.3 percent to $65.75 a barrel. Gold decreased 0.2 percent to $1,350.58 an ounce. Copper advanced 1.1 percent to $3.00 a pound, the largest gain in more than two weeks.