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(Bloomberg) -- Stocks posted modest gains as traders slogged through a deluge of European earnings while they awaited progress in trade negotiations and updates on the US economy.

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Europe’s Stoxx 600 index and contracts on the S&P 500 rose 0.3%, with sentiment boosted by signs of easing trade tensions after a White House official said imported automobiles would be given a reprieve from separate tariffs on aluminum and steel. Treasury yields ticked higher and the dollar rose.

In earnings news, Deutsche Bank AG shares gained after its trading unit hit a record. HSBC Holdings Plc was buoyed by news of a fresh share buyback. BP Plc slumped after cutting its buyback as profit missed estimates.

Beyond this week’s plethora of corporate results, investors will be tracking a stream of data for clues on the health of the American economy and prospects for Federal Reserve interest-rate cuts. Overall, relative calm has returned to markets after the extreme volatility spurred by the Trump administration’s April 2 tariff announcements.

“Right now, the biggest thing we need to focus on is the risk of recession in the United States,” said Johanna Kyrklund, chief investment officer at Schroders Plc, who added she favors European assets over those in the US in an interview with Bloomberg TV. “With the uncertainty created by the tariffs we need to start pricing at least a probability of a US recession. As we analyze each company stock-by-stock, we’re looking for that risk to growth.”

In Canada, the Liberal Party is projected to win a fourth consecutive election, giving a mandate to former central banker Mark Carney. The Canadian dollar weakened against the greenback on speculation Carney’s party will achieve only a narrow election victory.

Tariffs continued to dominate headlines, with Treasury Secretary Scott Bessent telling CNBC the US has put China to the side for now as it seeks trade deals with between 15 to 17 other countries.

“Overall, I think the news flow gets better from here,” said Jitania Kandhari, Morgan Stanley IM Solutions and multi-asset group chief investment officer, said in a Bloomberg TV interview. “But on the long-term impact we are still watching what that means for economic growth and inflation.”