European Markets Rebound Amid U.S. Tariff Suspension

European shares soared after U.S. President Donald Trump announced a 90-day tariff pause, sparking a major market rally. The pan-European STOXX 600 rose 7.2%, while Germany's index increased 8.1%. Still, tariffs on Chinese imports to the U.S. were raised, affecting various sectors like banks, miners, and energy.

In a significant turn of events, European shares experienced a robust surge on Thursday. This came after U.S. President Donald Trump declared an immediate 90-day suspension of tariffs on numerous trading partners, inciting a relief rally following recent market turmoil.

The temporary cessation of tariffs affected dozens of countries and was announced shortly after these tariffs had begun. However, the White House retained a 10% duty on nearly all U.S. imports. As a result, the pan-European STOXX 600 index climbed by 7.2% at 0709 GMT, following a 12.5% decrease since the U.S. imposed tariffs on April 2. Trade-sensitive Germany's index ascended by 8.1%.

Meanwhile, President Trump intensified pressure on China, raising tariffs on Chinese imports to 125% in response to China's 84% levy on U.S. goods starting April 10. The banking, mining, and energy sectors, which had been particularly impacted earlier, saw gains of 10.1%, 9.2%, and 9.3% respectively. Concurrently, a U.S. Treasury selloff that had caused renewed concerns about the bond market's fragility seemed to ease. On the other hand, Tesco's shares dropped 3.8% following a profit warning this year.

(With inputs from agencies.)