A person walks near the Milan Bourse (Italian stock exchange) as global markets brace for a hit to trade and growth caused by U.S. President Donald Trump's decision to impose import tariffs on dozens of countries, in Milan, Italy, April 3, 2025. REUTERS/Claudia Greco/File Photo

European stocks were steady on Tuesday, shrugging off modest losses from the previous session, as investors stayed on edge awaiting fresh signals from the second day of tense U.S.-China trade negotiations.

The continent-wide STOXX 600 held its ground at 553.12 points, as of 0703 GMT.

The spotlight remains on the talks in London between the world's two biggest economies, as investors eagerly watch for any signs of progress or a thaw in relations.

U.S. President Donald Trump on Monday put a positive spin on the talks, without divulging any details on how the trade war, that has threatened to disrupt global supply chains, could de-escalate.

Gains in automakers, which rose 1%, were offset by financial services and industrial shares, which fell 0.8% and 0.4%, respectively.

Among stocks, Novo Nordisk gained nearly 2% after a report said activist hedge fund Parvus Asset Management is building a stake in the drugmaker.

Bellway gained 4% after the British homebuilder raised its forecast for full-year volume production.

Shares of Aberdeen gained 5% after J.P.Morgan upgraded the fund manager's stock to "overweight" from "neutral".

(Reporting by Purvi Agarwal in Bengaluru; Editing by Sherry Jacob-Phillips)