FX.co ★ European Stocks Rally

On Thursday, major European stock indices made a strong recovery, with both the STOXX 50 and STOXX 600 climbing nearly 7% as markets rebounded from the previous day's downturn, mirroring substantial gains observed in Asian markets. The STOXX 600 was on track for its largest single-day increase since March 2020 following President Trump's announcement of a 90-day halt on reciprocal tariffs for most U.S. trading partners, with the exception of China, to facilitate renewed negotiations. Conversely, tariffs on Chinese goods were raised to 125%. The U.S. now imposes a 10% baseline tariff on imports from all nations, including the European Union, though notable exemptions continue to be applied to sectors such as semiconductors, copper, lumber, pharmaceuticals, precious metals, energy, critical minerals, as well as automobiles and auto parts. The rally on Thursday was primarily driven by gains in banking, technology, and industrial stocks.