By Shubham Batra April 18 (Reuters) - European shares rose on Tuesday, as investors awaited more U.S. bank earnings to gauge the health of the sector, while China's stronger-than-expected economic recovery boosted sentiment. However, easing inflation and surging bank savings are raising questions over the strength of domestic demand. Markets will now watch out for reports from Goldman Sachs Group Inc GS.N and Bank of America Corp BAC.N later in the day, while Morgan Stanley MS.N is due on Wednesday, after stellar results from the other big U.S. banks last week.