European Markets Soar on Trade Tensions Ease

European markets experienced a significant uplift on Thursday, driven by the easing of trade tensions after US President Donald Trump announced a three-month delay in the introduction of new tariffs for certain countries. This development echoed the sharp rally observed on Wall Street the previous day, where major US indexes closed with substantial gains following the announcement.

Positive Reactions from European Leaders

European leaders were quick to respond to the news, with many welcoming the temporary suspension of tariffs. They viewed this pause as an opportunity to reopen dialogue and potentially resolve ongoing trade disputes. The positive sentiment was reflected across major European indexes, with notable gains reported.

Significant Gains Across Major Indexes

By 9:00 am CET, the DAX had surged by an impressive 8.37%, with Infineon Tech AG leading the charge with a 21.24% spike. Similarly, the EURO STOXX 50 soared by 8.78%, and the CAC 40 gained 2.27%, buoyed by Sanofi SA's 6.18% jump. The FTSE 100 advanced by 5.96%, with Alliance Witan rising 7.02%. Italy's FTSE MIB skyrocketed by 10.20%, thanks to Prysmian's 15.28% surge. Switzerland's SMI climbed 9%, with Richemont soaring 13.16%, and Spain's IBEX 35 advanced by 8.10%, with IAG leading at a 23.55% increase.

Currency Movements

The euro and pound also saw gains against the US dollar, with the euro trading up 0.27% at $1.09815 and the pound gaining 0.38% to $1.28688 by 8:59 pm CET.