European Markets Surge Amid Strong Results and Trade Optimism
European shares rallied after positive quarterly outcomes from major firms like ABB and optimism surrounding U.S.-EU trade discussions. ABB's shares soared due to robust U.S. demand, while European chipmakers stabilized following TSMC's record profits. Meanwhile, EU-U.S. tariff talks continue as the industry awaits further developments.
In a shift from consecutive losses, European shares rebounded on Wednesday, buoyed by strong quarterly results from Switzerland's ABB and renewed optimism over a trade deal between the United States and the European Union. The pan-European STOXX 600 index rose by 0.8% at 0718 GMT.
Engineering giant ABB saw its shares leap by 8.2% following impressive record quarterly order intake prompted by an increase in demand from the U.S. and a growing need for data center products supporting artificial intelligence. Competitors Siemens and Schneider Electric also posted significant gains, boosting the European benchmark index.
Further easing market concerns, European chipmakers recovered from previous session losses, helped by TSMC's report of record profits for the second quarter. With EU's trade chief Maros Sefcovic in Washington for tariff talks, investors eye potential retaliatory measures as U.S.-EU negotiations proceed. President Donald Trump helped ease market anxieties by dismissing speculation about Federal Reserve Chair Powell's removal.
(With inputs from agencies.)
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