European stocks surge in relief rally following Trump's 90-day tariff pause
Stock price information displayed in the lobby of the Euronext NV stock exchange in Paris, France, on Wednesday, Dec. 14, 2022. Paris is close to claiming crown of Europe's biggest equity market from London as the differential between the markets has been gradually eroding since Britons voted to leave the European Union in 2016. Photographer: Nathan Laine/Bloomberg
European shares are making major gains on Thursday, following suit from Asian markets that have largely rebounded following US President Donald Trump's 90-day pause on "reciprocal" tariffs.
The pan-continental STOXX 600 is up 5.3% and is currently on track for its biggest one-day gain since March 2020.
Major indexes in London, Paris and Frankfurt are also up between 4.1% and 5.6%.
In Dublin, the Iseq All Share opened in the green on Thursday, rising by over 5%, with banks being the big winners following several days of losses.
Shares in AIB Group rose by more than 7% on Thursday morning, while shares in Bank of Ireland grew by 7.5%.
Across the globe, Asian stocks posted their biggest jump in more than two years as part of a wider market rebound in light of President Trump's latest tariff announcement.
Shares across the region gained on Thursday after the S&P 500 had its best day since the global financial crisis.
“I have authorised a 90 day PAUSE,” Mr Trump said after $10tn was wiped off global equity markets, with the US President noting the more than 75 countries that he said have been negotiating on trade and had not retaliated against his latest increases in tariffs.
US treasury secretary Scott Bessent later told reporters that Mr Trump was pausing his so-called “reciprocal” tariffs on most of the country’s biggest trading partners, but maintaining his 10% tariff on nearly all global imports.
Chinese stocks advanced on expectations for more stimulus after Trump increased levies on the country to 125%. The country’s top leaders are poised to meet Thursday to discuss additional economic measures.
Trump’s pivot came as the scale of the selloff in Treasuries market and days of mounting financial stress rattled investors and spurred a recession warning.
The reprieve underscores the pressure markets can bring to bear as Trump sought to remake the world trading order with 100-year high levies.
However, the US President raised duties on China to 125% after the country retaliated and said it would raise levies on US goods to 84%.
Countries that were hit with the higher, reciprocal duties that went into effect Wednesday will now be taxed at the earlier 10% baseline rate applied to other nations, with the exception of China, according to a White House official.
While Chinese equities rallied on stimulus expectations, the onshore yuan fell to its weakest level since 2007. Bets on the People’s Bank of China's monetary easing measures to support the economy also weighed on the currency. Goldman Sachs revised China's real GDP growth forecasts for 2025 and 2026 downward to 4.0% and 3.5%, respectively.
Additional reporting from Bloomberg.
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