European stocks climbed on Thursday after President Donald Trump announced a “90-day pause on tariffs” for several U.S. trading partners, triggering a major relief rally following days of market turbulence.
At the same time, the White House maintained a “10 per cent blanket duty on almost all US imports.”
The pan-European STOXX 600 index rose 7.2% at 0709 GMT, bouncing back after a 12.5% loss since U.S. reciprocal tariffs kicked in on April 2.
Germany’s export-heavy benchmark also gained 8.1%, boosted by the trade developments.
Trump intensified trade pressure on China, raising the tariff on Chinese goods to “125 per cent” from “104 per cent,” which took effect Wednesday. The move counters China’s plan to impose an “84 per cent levy on US goods starting April 10.”
All sectors were higher, including banks, miners, and energy, which gained 10.1%, 9.2%, and 9.3%, respectively, with heavily hit industries rebounding strongly.
U.S. Treasury markets also steadied after recent heavy selloffs reignited concerns over global bond stability.
Tesco declined 3.8% after the UK’s top food retailer warned its profits are expected to drop this year.