European markets recover as US backs away from EU tariff threat

European markets recovered Monday morning after the United States postponed a threat to impose steep tariffs on the European Union, easing the weekend uncertainty, Reuters reports. The planned 50% tariffs, announced by US President Donald Trump on Friday, were put on hold following a conversation with European Commission President Ursula von der Leyen. Later, she described the call as "good" on social media. The news sent the euro strengthening against the dollar to its highest point since April 30.

Despite the rally, investor sentiment remains fragile. According to the report, the US president's unpredictable policy moves continue to fuel market volatility.

Looking ahead, investors are awaiting key inflation data. France and Germany are scheduled to release their latest figures on Tuesday and Friday, respectively, with a report for the entire eurozone expected next week.