European Markets Surge as Trump Pauses Tariffs

European shares witnessed a significant surge after U.S. President Trump announced a 90-day pause on certain tariffs. The pan-European STOXX 600 rose by 5.9%, encouraged by the temporary relief in trade tensions. European Commission President Ursula von der Leyen welcomed the move, emphasizing a window for negotiations.

European stock markets experienced a significant rally on Thursday, driven by an announcement from U.S. President Donald Trump about a 90-day pause on reciprocal tariffs for most trading partners. This move comes after a severe market downturn in recent days.

The pan-European STOXX 600 index jumped 5.9% at market opening, recovering from a 12.5% loss since the tariffs were implemented on April 2. Germany's key index rose by 6.7%, reflecting relief in trade-sensitive sectors. Although the U.S. maintains a 10% duty on most imports, the temporary suspension of tariffs provides a crucial window for negotiation.

European Commission President Ursula von der Leyen supported Trump's decision, marking it as an opportunity for negotiation and business reorganization. Meanwhile, Trump also increased tariffs on Chinese imports, further complicating trade dynamics. Despite the uncertainty, analysts suggest that while economic growth may slow, the U.S. and Europe could avoid a recession.

(With inputs from agencies.)