European Stocks Rally on Mixed Economic Signals

European markets closed higher on Thursday, buoyed by a combination of positive trade data and optimistic tariff reduction talks between the U.S. and China. The euro area reported a trade surplus of €24 billion in February, while speculation about Washington halving tariffs on Chinese goods added to the upbeat mood.

Challenges Amid Growth

Despite the positive trade news, the eurozone faced challenges with a decline in business activity and a 0.5% drop in construction output in February. Germany's composite PMI also showed signs of weakening, and the UK's private sector experienced a sharper downturn in April.

Market Highlights

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

Currency Movements

In currency markets, the euro and pound both lost ground against the dollar, reflecting the day's mixed economic indicators.