European markets rose sharply on Thursday, after U.S. President Donald Trump temporarily reversed course on tariffs.<\/p>\n
The regional Stoxx 600 index was 4.3% higher at 2:40 p.m. in London, with stocks across the board surging to place all individual sectors firmly in positive territory. Banking, tech and industrials stocks notched the biggest gains, surging 6%, 6% and 5%, respectively.<\/p>\n
In a volatile week for markets that has been marked by sharp moves higher and lower, the pan-European Stoxx 600<\/a> ended the prior session down 3.5% at its lowest closing level since January 2024.<\/p>\n But later on Wednesday, Trump temporarily reduced new tariff<\/a>\u00a0rates on imports from most U.S. trade partners to 10% for 90 days \u2014 a sharp reversal from previous comments in which he insisted duties would not be lifted.<\/p>\n U.S. stocks rallied after Trump’s announcement, with the\u00a0S&P 500<\/a>\u00a0soaring more than 9% during Wednesday’s session to see its\u00a0third-largest gain in a single day<\/a>\u00a0since World War II.<\/p>\n The\u00a0Dow Jones Industrial Average<\/a>\u00a0jumped 7.87% \u2014 its biggest percentage advance since March 2020 \u2014 and the Nasdaq Composite<\/a>\u00a0jumped over 12%, notching its largest one-day jump since January 2001 and second-best day ever.<\/p>\n However, the U.S. indexes opened in the red<\/a> on Thursday.<\/p>\n Deutsche Bank Research’s George Saravelos said some version of the so-called “Trump put” \u2014\u00a0a play on options terminology that suggests the president would keep the stock market from falling too far \u2014 is back.<\/p>\n “The administration is finally signalling responsiveness to the very extreme market conditions we highlighted in the morning,” he said in a note Wednesday.<\/p>\n “At the margin, this should reduce the probability that such an extreme policy mix returns. It is more likely that the administration accepts negotiated outcomes on trade (and other) policies, and it is more likely the administration becomes responsive to market pressure, if this continues.”<\/p>\n Trump’s shift in policy came on the same day his so-called reciprocal tariffs came into effect, with close to 90 countries being targeted.<\/p>\n China, however, did not get a reprieve from the president. He increased tariffs on the country to 125% after China said earlier in the day that it would increase\u00a0duties<\/a> on imports from the U.S. to 84%.<\/p>\n