European investors' sentiment has improved, causing a slight drop in prices for Euro credit default swaps.

With the release of corporate earnings approaching, investor sentiment has improved, and the price of Euro credit default swaps has fallen. The role of credit default swaps is similar to default insurance. Rostro analyst Joshua Mahony stated in a report, "In early Tuesday trading, the overall European markets show a positive trend, shaking off the dominant tariff concerns in the weekend news." Standard & Poor's Global Market Intelligence data shows that the iTraxx Europe crossover index tracking Eurozone high-yield bond credit default swaps fell by 2 basis points to 281 basis points.