European equities experienced a significant rebound on Tuesday, recovering from the steepest four-day decline seen since the pandemic, a downturn primarily driven by concerns over US tariffs. The Stoxx 50 index climbed by 2.5%, while the broader STOXX 600 surged over 3%, marking its most impressive daily performance since 2022. Gains were evident across various sectors, with financial, industrial, and defense stocks seeing the most robust increases, though telecommunications stocks lagged behind.
This upturn followed significant losses sparked by President Trump's tariff announcement on April 2, which wiped approximately $1.7 billion off the regional benchmark index. Although the markets regained some ground, trade tensions remained heightened. European Union representatives indicated their preparedness to introduce a suite of countermeasures, which may include potential digital taxes and the imposition of 25% tariffs on certain American products. A proposal for a “zero-for-zero” industrial tariff agreement was dismissed by Trump, perpetuating the strained atmosphere. Concurrently, China reiterated its intention to retaliate concerning trade issues.
In corporate developments, Infineon's stock advanced following its announcement of an agreement to acquire Marvell's automotive division for $2.5 billion.
