October 4, 2022 03:44 AM ET
European stock markets climbed higher on Tuesday, building on the positive start to the new quarter in the previous session.
At 03:45 AM ET, the DAX in Germany was trading 1.9% higher, the CAC 40 in France was up 2.3%, and the FTSE 100 in the U.K. climbed 1.1%.
European stocks started the new quarter on a positive note, recovering from sharp third-quarter losses caused by concerns about slowing growth and aggressive monetary tightening.
The UK government's decision to reverse planned tax cuts for top earners contributed to this sentiment.
However, this cancels only a small portion of the planned £45 billion in unfunded tax cuts announced last week and seriously undermines the authority of both Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng.
The Reserve Bank of Australia raised interest rates by less than the expected 25 basis points on Tuesday, which also had a positive impact on sentiment.
The economic data calendar is largely empty on Tuesday, although investors will be keeping an eye on the Eurozone PPI for August for further clues on inflationary pressures in the region. The index is expected to rise 4.9% month-on-month and 43.1% on an annual basis.