German stocks rallied on Tuesday, the U.S. dollar weakened, and Eurozone yields fell as focus shifted to a two-day policy meeting of the Federal Reserve that gets underway later today.
It is widely believed that Fed might signal a slowdown of its tightening path after delivering a 75-bps rate hike on Wednesday.
Doubts remain, however, about whether the Fed will soften hits hawkish stance amid many risks surrounding the inflation outlook.
The benchmark DAX jumped 135 points, or 1 percent, to 13,389 after finishing marginally higher the previous day.
Economy-sensitive stocks were moving higher, with lenders Commerzbank and Deutsche Bank rising around 2 percent each.
Automakers BMW, Mercedes Benz and Volkswagen were up around 1 percent each.
Editor: Callie
Proofreading：AUREL