European shares surged on Thursday after U.S. President Donald Trump announced an immediate 90-day pause on tariffs for many trading partners, prompting a massive relief rally following a days-long market rout.
The suspension of punishing tariffs on dozens of countries came less than 24 hours after they kicked in. Still, the White House maintained a 10% blanket duty on almost all U.S. imports.
The pan-European STOXX 600 jumped 7.2% at 0709 GMT, after losing 12.5% since the U.S. reciprocal tariffs on April 2. Trade-sensitive Germany’s benchmark index rose 8.1%.
Trump, however, further ramped up pressure on China by hiking the tariff on Chinese imports to 125% from the 104% level that kicked in on Wednesday in retaliation for China’s announcement of an 84% levy on U.S. goods starting April 10.
European shares resume selloff as trade war escalates
All sectors were higher with the most battered ones this month - banks, miners and energy advancing 10.1%, 9.2% and 9.3% respectively.
A violent U.S. Treasury selloff in the previous sessions that had reignited fears of fragility in the world’s biggest bond market also showed some signs of easing on Thursday.
Tesco fell 3.8% after Britain’s biggest food retailer warned its profit would likely fall this year.
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