European Stocks Close Sharply HIgher
European stocks closed sharply higher on Wednesday, tracking the strong momentum in equity markets across the globe after the US Presidential administration signaled that tariffs on China are likely to be de-escalated in the near future.
The Eurozone's STOXX 50 closed 2.8% higher at 5,100 and the pan-European STOXX 600 advanced 1.8% to close at 517. Statements against the duration of 145% tariffs against China were made by both US President Trump and Treasury Secretary Bessent, displaying some confidence that there will be no lasting trade embargo during the administration.
The signals stoked risk assets across the globe, supporting European stocks across most sectors. On the corporate front, SAP surged by over 10% after delivering strong results and an optimistic guidance, becoming the largest market cap in the continent amid the less favorable momentum for LVMH and Novo Nordisk. On the data front, flash PMIs showed that private sector activity in the Eurozone stalled.
Source: Trading Economics
