European stocks have rallied sharply at today’s market opening after President Donald Trump temporarily repatriated the massive global tariffs that recently collapsed the market.
The STOXX 600, which includes the largest European companies, is 5.3% higher at 4:30am, with stocks surged among all sectors, particularly among the worst stocks affected by recent sell-offs.
That said, profits in Europe and Asia — Japan’s Nikko index jumped 9% — were still relatively minor when compared to the huge plunge most major indicators have taken since last week that Trump said he would impose blanket tariffs on almost all American trading partners.
However, he said yesterday that he would temporarily cut the new import fees to 10% in 90 days, leading to US stocks taking significantly higher. The S&P 500 rose 9%, one of the greatest profits of living memory, with the Dow Jones industrial average rising 7.8% and the high-tech heavy-nasdaq composite rising 12% on one of the highest trading days of all time.
Today, investors are paying attention to further comments from China. This is not exempt from tariffs and Trump is engaged in an increasingly fierce trade war.