By Javi West Larrañaga and Marleen Kaesebier

(Reuters) -The outlook for European corporate health has considerably improved, the latest earnings forecasts showed on Tuesday, showing a continued rise after the extension of the U.S.-China tariff truce and the EU-U.S. trade deal.

European companies are expected to report 4.8% growth in second-quarter earnings, on average, according to LSEG I/B/E/S data. That is above the 3.1% rise analysts had expected a week ago.

Market sentiment has steadily improved in recent weeks, after the European Union struck a framework deal with the United States in July and the U.S. and China extended their tariff truce for another 90 days on Monday.

Following U.S. President Donald Trump's plans for tariffs on all countries in February, second-quarter earnings expectations of STOXX 600 companies had gone from a 9.1% year-on-year increase right before the announcement to a 0.7% fall before the signing of the U.S.-EU deal.

They have considerably increased in the weeks since Brussels and Washington agreed on the 15% import tariff on most EU goods, half the threatened rate.

The consensus forecast for second-quarter revenue has also continued to improve, the LSEG report showed, with analysts now expecting a 1.3% fall compared to a 2.0% drop last week.

Out of ten sectors in the European benchmark index, four are expected to see a year-on-year improvement in quarterly earnings. The technology sector is expected to have the highest growth rate at 26%, followed by healthcare, financials and industrials.

Earnings of Danish wind turbine maker Vestas later this week could show how European renewable companies are dealing with tariffs and the increased uncertainty in the United States. On Monday, wind farm developer Orsted asked shareholders for $9.4 billion to cope with Trump's hostility to wind power.