European and Asian stock markets demonstrated a sharp rise after US President Donald Trump announced a 90-day suspension of mutual tariffs for most trading partners.
The pan-European STOXX 600 rose 5.9%, paring some of the losses it suffered since April 2, when the index fell 12.5% since the new tariffs took effect. Japan’s Nikkei 225 showed an increase of 9.13%.
Particularly strong dynamics were demonstrated by the German DAX index, which rose by 5.21%, as Germany is considered one of the most vulnerable economies in the context of trade with the United States. Positive growth was recorded in all sectors, in particular in those most affected recently: the banking sector rose by 9.4%, the mining sector by 7.5%, and the energy sector by 7.2%.
Despite the positive news, the volatility index of the Eurozone remained at a high level — 35 points, which, according to analysts, indicates the persistence of high fluctuations in the market.
The abolition of hard tariffs for most countries took place less than a day after their introduction. However, the US administration has left the 10% tariff on almost all imported goods, except for Chinese imports, which are subject to a 125% rate.
The 90-day suspension of customs measures is seen as an opportunity to negotiate, find compromises or, failing that, prepare businesses to mitigate the economic consequences. According to experts, the very fact of President Trump’s willingness to make concessions is a positive signal for global markets.
