Europe stocks end 1.6% higher; real estate, banks lead gains on hopes of Trump tariff relief

European markets rose on Tuesday amid tentative optimism that there will be some respite from U.S. President Donald Trump's tariff regime.

The pan-European Stoxx 600 index provisionally ended the day higher by 1.6%. The U.K.'s FTSE 100 was up 1.5%, while France's CAC 40 and Germany's DAX rose by 0.9% and 1.3%, respectively.

It comes after a 2.7% jump in the Stoxx Europe 600 index on Monday.

The real estate and banking sectors led the market higher, rising by more than 2.4%, indicating risk-taking by investors.

Equity markets were comfortably in positive territory after Trump on Monday said he was looking to "help some of the car companies" amid his 25% auto tariffs, raising hopes of a wider industry reprieve.

Luxury bellwether LVMH dropped around 7.7% after sales unexpectedly declined in the first quarter.

Regional markets started the week on a positive note, closing higher Monday as traders digested news of a U.S. tariff exemption for some tech items.

Trump on Sunday said he would be announcing the tariff rate on imported semiconductors over the next week, NBC News reported. The news boosted sentiment on Wall Street on Monday, and Asia-Pacific markets mostly rose overnight as a result.