European Stocks Rally on Trump's 90-Day Tariff Pause

Market Relief Rally

• 📈 European shares surged significantly after US President Donald Trump announced an immediate 90-day pause on tariffs for many trading partners.
• 💡 This announcement triggered a massive relief rally, recovering from a days-long market rout.
• ⚠️ The tariff suspension came less than 24 hours after initial tariffs were implemented.

Market Performance and Sectors

• 📊 The pan-European STOXX 600 jumped 7.2% in early trading, rebounding from a 12% loss since US reciprocal tariffs were imposed on April 2nd.
• 🇩🇪 Germany's benchmark index, particularly sensitive to trade, rose by over 8%.
• 🏦 All sectors experienced gains, with the most heavily impacted sectors like banks, miners, and energy increasing by approximately 10% each.

Ongoing Trade Tensions

• 🇺🇸 A strong US Treasury sell-off showed signs of easing, but the trade war between the US and China persists.
• 🇨🇳 Trump escalated pressure on Beijing by increasing tariffs on Chinese imports to 125%, in retaliation for China's planned 84% levy on US goods.