FX.co ★ European Stocks Start Q2 on a Positive Note

European stock markets commenced the second quarter on an upbeat trajectory, with the STOXX 50 and STOXX 600 advancing by 0.7% and 0.8%, respectively. This marks the first increase in four sessions for both indexes, following a downturn of approximately 1.5% in the previous session, which had seen them reach two-month lows. Investors are closely monitoring the ongoing trade tensions, particularly with the U.S. "Liberation Day" slated for tomorrow. President Donald Trump is anticipated to announce a plan for reciprocal tariffs, generating uncertainty over the possible scope and repercussions of these measures. Concurrently, market players are also focusing on the preliminary inflation figures for the Eurozone. A deceleration in the annual inflation rate might bolster expectations for another interest rate reduction by the ECB in April. On the corporate front, shares of SAP rose by 1.7%, LVMH by 0.5%, ASML Holding by 0.8%, and L'Oréal by 1.3%. The automotive sector also recorded gains, with Mercedes-Benz increasing by 0.1%, BMW by 0.5%, and Volkswagen by 0.5%.