European Stocks Advance as Fed Concerns Ease; SAP Soars
European stocks advanced as worries eased over a potential removal of Federal Reserve Chair Jerome Powell. SAP gained after strong earnings.
The Stoxx Europe 600 Index gained 1.4% by 8:15 a.m. in London, with mining and tech shares leading the gains. SAP SE soared as much as 11% after the German software firm reported profit and free cash flow that topped estimates.
US President Donald Trump said Tuesday he had no intention of firing Powell despite having repeatedly complained that the Fed was not cutting interest rates quickly enough. He also said he plans to be “very nice” to China in any trade talks and that tariffs will drop if the two countries can reach a deal.
“The necessary backing for the president of the central bank will provide a short-term calm in the markets,” said Guillermo Hernandez Sampere, head of trading at asset manager MPPM. “Further decisions will be necessary to regain confidence and curb the existing volatility.”
The main European index is down 3.7% so far in April amid concerns about the impact of Trump’s tariffs on the economic growth and corporate profits in the region. Traders will later turn their focus to manufacturing figures in the UK and euro zone.
In other individual stocks, Volvo AB fell as much as 2.8% after the carmaker reported a decline in income as uncertainty around US tariffs hit demand for trucks in North America.
Source : Bloomberg
