European Markets Surge as Germany Approves Tax Relief Package

Germany's stock market reached unprecedented heights on Wednesday, catalyzed by the government's approval of a €46 billion corporate tax relief initiative designed to invigorate the nation's economy. This legislative milestone proved instrumental in bolstering European shares despite prevailing concerns over global trade dynamics.

The German cabinet endorsed the relief package targeting company support from 2025 through 2029. Although the pan-European STOXX 600 saw a modest increase of 0.7% by 0930 GMT, underlying anxieties persisted due to U.S. tariff hikes on steel and aluminum, which coincided with the deadline for trade agreement submissions by pertinent U.S. partners.

The STOXX index has experienced a 16% increase from previous lows following U.S.-U.K. trade deals and pausing tariffs on China. While Germany's economic relief lifted sectors like technology, market stakeholders are now keenly anticipating the European Central Bank's imminent policy meeting and an upcoming pivotal U.S. jobs report.

(With inputs from agencies.)