European markets are on track to rise sharply when trading begins Thursday after U.S. President Donald Trump on Wednesday reversed course on tariffs, sending global markets higher.
In a volatile week for shares that has been marked by sharp market moves higher and lower, the pan-European Stoxx 600 had closed down 3.5% at its lowest closing level since January 2024 on Wednesday.
But later on Wednesday, Trump dropped new tariff rates on imports from most U.S. trade partners to 10% for 90 days — a sharp reversal from previous comments in which he insisted duties would not be lifted. The shift came on the same day that Trump’s so-called reciprocal tariffs first came into effect, with close to 90 countries being targeted.
China’s tariff rate was, however, increased to 125%, the president said. The country said earlier on Wednesday that it would increase its tariff rate for imports from the U.S. to 84%.
The European Union also retaliated Wednesday, with the bloc’s lawmakers approving its first set of countermeasures in response to the steel and aluminum tariffs imposed by the U.S. in March.
U.S. stocks rallied after Trump’s announcement, with the S&P 500 soaring more than 9% during Wednesday’s session to see its third-largest gain in a single day since World War II.
Asia-Pacific shares were last widely higher in Thursday trading, with Japanese markets leading gains in the region.
— CNBC’s Dan Mangan and Sean Colon contributed to this report.
European stocks head for jump at the open
European stocks look set to rise sharply when trading begins Thursday.
According to IG data, the U.K.’s FTSE 100 was set to add 414 points to 8,071, the German DAX was on track to jump 1,547 points to 21,231, and France’s CAC 40 was set to rise 543 points to 7,418. The Italian FTSE MIB meanwhile was set to soar 3,031 points to 34,911.
— Sophie Kiderlin
Japan’s Nikkei surges over 8% in early trade as Trump tariff pause fuels stock rally in Asia
Japan’s Nikkei 225 share average rallied significantly on Thursday, leading gains in Asia-Pacific.
The benchmark surged 8.83% as at 9.25 a.m. local time to 34,508.62, crossing the 34,000 threshold after six days.
Nikkei 225
Market reaction was ‘absolutely not’ a factor in tariff pause, Lutnick says
Commerce Secretary Howard Lutnick said on “Fast Money” that the selling in financial markets over the past week was “absolutely not” a factor in the tariff pause on Wednesday. Earlier in the day, before President Trump announced the change, the S&P 500 had fallen to just above its bear market threshold, while the 10-year Treasury yield briefly traded above 4.5%.
CNBC’s Melissa Lee also asked Lutnick if U.S. companies could be confident in the direction of policy going forward. The Commerce chief responded that firms should carefully consider their exposure abroad and predicted upcoming announcements of companies building products in the U.S.
“I think it’s important for companies to understand that the countries they do their business in matter. If you do business in China, or you do business with a country that basically is just a proxy China, then you’re going to have to deal with the fact that President Trump does not think we are being treated correctly,” Lutnick said.
— Jesse Pound
