European Stocks Close Sharply Higher
European stocks closed sharply higher on Monday after US President Trump issued a temporary pause on his reciprocal tariffs package for a range of computers and consumer electronics products.
The Eurozone's STOXX 50 jumped 2.4% to close at 4,901 and the pan-European STOXX 600 gained 2.6% to close at 499.5. The pause includes the baseline 10% tariff on all countries although a 20% tariff on Chinese goods remains in effect.
Trump also said he will still apply tariffs to phones, computers and popular consumer electronics and that details on a tariff rate for semiconductors would be announced soon.
Banks and insurers led the gains as bonds across the Eurozone gained and yield spreads between members narrowed, with BNP Paribas, UniCredit, Santander, and Munich Re surging between 6.5% and 4%. In the meantime, LVMH added 1% ahead of its revenues release after the bell.
Source: Trading Economics