European Markets Rebound Amid U.S. Tariff Delay
European shares surged on Monday after U.S. President Trump delayed imposing a 50% tariff on the EU, leading to market recovery. Key indices and shares showed strong gains, driven by sectors vulnerable to tariffs and benefiting from improved sentiment. Focus remains on upcoming economic data from the euro zone.
European shares experienced a significant rebound on Monday, as investors welcomed the relief following U.S. President Donald Trump's decision to delay a threatened 50% tariff on the European Union. This action reversed some of the losses incurred in the prior trading session.
The STOXX 600, a key pan-European benchmark, rose by 1% in early trading hours following a 0.9% drop on Friday. The initial decline was sparked by Trump's abrupt announcement to escalate tariffs on European goods, expressing dissatisfaction with the pace of negotiations. However, after discussions with European Commission President Ursula von der Leyen, Trump extended the tariff deadline to July 9.
The European automobile and parts sector, sensitive to tariff discussions, showed strong performance with index gains of 1.4% and notable advances from companies like Mercedes, BMW, and Volkswagen. Additionally, luxury stocks and economically sensitive banks contributed to market positivity. Despite the light trading volumes due to public holidays, markets were also buoyed by supportive U.S. stock futures.
(With inputs from agencies.)
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