European Stocks Rally on Trade Surplus and Tariff Cut Speculations

European stocks closed higher on Thursday, buoyed by a mix of economic indicators. The euro area reported a trade surplus of €24 billion in February, while speculation about Washington potentially halving tariffs on China added a positive note to the market sentiment.

Challenges in Eurozone Business Activity

Despite the upbeat trade news, the Eurozone faced challenges with declining business activity in April and a 0.5% drop in construction output for February. The German composite PMI also showed signs of worsening, highlighting the uneven recovery across the region.

UK Private Sector Faces Sharp Downturn

The United Kingdom's private sector activity experienced a significant downturn this month, further complicating the economic landscape in Europe.

Market Performances Highlighted

The DAX led the charge with a 3.21% increase, closely followed by the Euro Stoxx 50 which jumped 2.82%. SAP emerged as the top performer, soaring 10.62%. France's CAC 40 and the UK's FTSE 100 also posted gains, with notable performances from Eurofins Scientific and Croda International.

Currency Movements

On the currency front, the euro and pound both lost ground against the dollar, reflecting the day's mixed economic signals.