Latest news with #EuroStoxx600
Euronews
7 days ago
- Business
- Euronews
Germany's DAX hits a new high as Trump upbeat on US-EU trade talks
European stock markets extended their rally for a second consecutive trading day on Tuesday as concerns over escalating US-EU trade tensions eased. Germany's DAX rose 0.82% to 24,226.49, marking a fresh record high, while the Euro Stoxx 600 climbed 0.33% to 552.33, edging within 0.2% of its March peak. US President Donald Trump expressed optimism toward the trade negotiations. 'I have just been informed that the EU has called to quickly establish meeting dates,' he wrote in the Truth Social, 'This is a positive event, and I hope that they will, FINALLY, like my same demand to China, open up the European Nations for Trade with the United States of America. They will BOTH be very happy, and successful, if they do!!!' The US president's comments also lifted Wall Street, with the Dow Jones Industrial Average up 1.78%, the S&P 500 rising 2.05%, and the Nasdaq composite surging 2.47%. On Sunday, Trump announced he had agreed to postpone the implementation of a 50% tariff on EU imports until 9 July, following a phone call with European Commission President Ursula von der Leyen. During the call, von der Leyen expressed the EU's readiness 'to advance talks swiftly and decisively' in a bid to avert further trade escalation. Trump had initially announced 20% 'reciprocal tariffs' on EU goods on 2 April before reducing the rate to 10% for 90 days. However, last Friday, he threatened to impose a 50% tariff from 1 June, citing frustration over the pace of negotiations and disagreement among EU member states. While specific meeting dates remain absent publicly, EU Trade Commissioner Maroš Šefčovič is expected to meet his US counterpart in Paris next Tuesday during the Organisation for Economic Co-operation and Development (OECD) summit. Talks are expected to focus on removing bilateral tariffs on industrial goods and addressing US import levies on steel, aluminium, semiconductors, automobiles, and pharmaceutical products, according to sources familiar with the matter. Earlier this month, the EU postponed a proposed package of retaliatory tariffs on up to €95 billion worth of US imports, including wine, spirits, aircraft, auto parts, electrical products, and more. The DAX is up 22% year-to-date, making it the top performer among major global indices. The index had pulled back sharply in April following Trump's announcement of the reciprocal tariffs but has consistently rebounded on signs of de-escalation in trade tensions. In sectors, the defence and banking stocks led the broad gains, underpinned by optimism over Germany's fiscal and defence spending reforms. In March, Germany's Friedrich Merz announced plans to increase defence spending beyond 1% of GDP and a €500 billion special fund for infrastructure investment. The landmark fiscal package particularly lifted sentiment in European defence and industrial stocks, with Rheinmetall AG shares soaring 207% so far this year, repeatedly hitting new highs. Meanwhile, European banking stocks have been supported by the European Central Bank's accommodative monetary policy stance, which has bolstered investment banking income and lending activity. Shares of Deutsche Bank and Commerzbank soared 50% and 75% respectively this year. Despite the bullish momentum in equities, the euro weakened against the US dollar, as the greenback staged a strong rebound following Trump's decision to delay tariffs — a move that mirrored previous dollar rallies during the US-China trade talks. The EUR/USD pair fell to just above 1.13 during Wednesday's Asian session, retreating from over 1.14 on Monday, as markets priced in renewed optimism over US-EU trade negotiations and an improved US economic outlook. About 50 institutional investors will put up $1.5 billion (approximately €1.38bn) in the private placement for common shares in the company and another $1 billion (around €920 million) for convertible senior notes, according to Trump Media and Technology Group, the operator of Truth Social and other companies. Trump Media said it intends to use the proceeds for the creation of a 'bitcoin treasury.' 'This investment will help defend our company against harassment and discrimination by financial institutions, which plague many Americans and US firms," Trump Media CEO and Chairman, Devin Nunes, said in prepared remarks. Shares of Trump Media & Technology Group Corp., based in Sarasota, Fla., tumbled 9% following the update. Other companies have adopted similar strategies through cryptocurrency. Cloud and mobile software developer MicroStrategy Inc. has built up a treasury reserve containing billions worth of bitcoin through stock sales and debt financing. Trump, who referred to cryptocurrencies in his first term as 'not money,' citing volatility and a value "based on thin air," has shifted his views on the technology. During an event at his Mar-a-Lago club in Florida during his presidential campaign in May 2024, Trump received assurances that crypto industry backers would spend lavishly to get him reelected. Last week, Trump rewarded 220 of the top investors in one of his other cryptocurrency projects — the $Trump meme coin —with a dinner at a luxury golf club in Northern Virginia, spurring accusations that the president was mixing his duties in the White House with personal profit.
Mid East Info
27-05-2025
- Business
- Mid East Info
European Stocks Rebound After Trump's Tariff Volatility - Middle East Business News and Information
By Daniela Sabin Hathorn, senior market analyst at European stocks have endured a volatile 24 hours, triggered by another round of tariff drama from Donald Trump over the weekend. In classic fashion, Trump took the 20% tariff and raised it to 50% effective June 1, only to postpone the implementation to July 9 following a weekend call with European Commission President Ursula von der Leyen. In a statement on social media Donald Trump claimed that the European Union had been formed for the primary purpose of taking advantage of the United States, adding that it had been very difficult to deal with. The initial announcement of 50% tariffs from June 1 sent European stocks tumbling, with the Euro Stoxx 600 shedding 2% in just 30 minutes. However, the bearish momentum didn't last long as markets seem to be used to dealing with Trump's back and forth on tariffs. The index had recovered most of the ground by the close on Friday and the full extent of the damage was undone by Monday morning after Sunday's news of the delay following Trump's chat with the European Commission's Ursula von der Leyen. EURO STOXX 600 5-minute chart: Past performance is not a reliable indicator of future results. This whipsaw reaction highlights a growing market sentiment: investors no longer see Trump's tariff threats as credible policy moves, but rather as bargaining tactics. As a result, the market impact has become more muted—and less durable. Still, the return to aggressive rhetoric may have injected a degree of caution into markets that had grown increasingly optimistic about the stability of international trade negotiations. On Tuesday, bullish momentum has returned. The Euro Stoxx 600 has broken above last week's highs, surpassing 550 and suggesting that the monthly peak of 554.90 could be within reach. However, caution is warranted. The RSI (Relative Strength Index) had been edging into overbought territory last week. While the brief pullback helped ease some of that pressure, it wasn't enough to fully reset momentum, meaning upside potential may be limited if overbought conditions persist. EU STOXX 600 daily chart: Past performance is not a reliable indicator of future results. With a light economic calendar in the Eurozone this week, investor attention will likely stay fixed on trade developments. For now, the path of least resistance for European equities appears to be higher—as long as optimism outweighs uncertainty.
Yahoo
15-04-2025
- Business
- Yahoo
Global markets rise as investors bet Trump's tariffs on the tech supply chain won't happen
Global markets rose this morning on news that President Trump's impending tariffs on tech products would be exempted or delayed. However, there remains confusion over whether and when the White House will act against the smartphone, semiconductor, and device supply chain. Today, investors in the U.S. markets will be grappling with the question of whether they believe Trump will impose steep tariffs on Big Tech's China supply chain (as he said he would on Sunday) or whether he will back off (as the the U.S. Customs and Border Protection said it would on Friday). Right now, stocks are trading up, so investors think the tech tariffs are at least being pushed off into the future or won't happen at all. Apple stock was boosted 5.45% in overnight trading and hit $208.95 this morning, premarket. Most of the company's supply chain is trapped behind Trump's tariff barriers on China and it would thus benefit if the tariffs end up not happening. Here's a snapshot from Fortune's CEO Daily of where markets stood in early trading before the opening bell in New York: UK's FTSE 100 was up 1.9% in early trading. The Euro Stoxx 600 was up strongly by 2.3% this morning. Japan's Nikkei was up 1.2%. Hong Kong's Hang Seng was up 2.4%. China's Composite was up 0.76%. The VIX fear index has fallen by 30% over the last five days. The S&P 500 closed up 1.8% on Friday and futures contracts for the index were trading up a further 1.5% this morning, premarket. The U.S. may be in a weaker position in the China trade war than the president thinks, according to a Goldman Sachs note sent to clients yesterday, from analysts Andrew Tilton et al. That's because the U.S. is more dependent on imports from China than China is dependent on imports from the U.S., they say: 'Our findings reveal that US reliance on Chinese imports is far greater than China's reliance on US imports. For 36% of US imports from China (around $158 billion), the US depends on China for over 70% of its supply, indicating limited short-term flexibility for American importers to find alternative sources, even under substantial tariff pressures. "In contrast, China's reliance on US imports above the 70% threshold totals just $14 billion, while more than half of China's imports from the US fall into categories where the US supplies less than 30% of China's total demand. 'Within high-dependence categories (e.g., over 70% reliance), the US shows concentrated exposure to Chinese-made final consumer goods, particularly communication equipment (e.g., telephones, representing 9% of total U.S. imports from China) and toys (2.5%). Meanwhile, only 10% of China's imports from the U.S. exceed the 70% reliance threshold, nearly all of which are transportation-related—primarily aircraft and spacecraft,' the note said. This story was originally featured on Sign in to access your portfolio
Yahoo
10-04-2025
- Business
- Yahoo
European markets eye historic rally following Trump's tariff pause
European markets staged a historic rally in early morning trading on Thursday, tracking Wall Street's euphoric surge after US President Donald Trump unexpectedly announced a 90-day pause on tariffs for countries that have not retaliated against US trade measures, excluding China. The Euro Stoxx 50, which tracks blue-chip companies across the eurozone, jumped 8.2% to nearly 5,000 points, on pace for its strongest session since the onset of the pandemic in March 2020. The broader Euro Stoxx 600 rose 7.4%, while national indices across the continent saw similarly powerful gains. Germany's DAX rallied 8.5%, Italy's FTSE MIB climbed 8.4%, France's CAC 40 advanced 8.6%, and Spain's Ibex 35 surged 8.3%, with all benchmarks poised to register their biggest one-day gains in over four years. The rally followed a dramatic shift in US trade policy late on Wednesday, when President Trump lowered tariff rates — retaining a universal 10% 'reciprocal' levy for all non-retaliating nations, offering a three-month negotiation window. Meanwhile, tariffs on Chinese imports were raised to 125% in response to Beijing's own recent retaliatory measures. Related European markets move lower as Trump's sweeping tariffs take effect Why are US Treasury bonds losing their safe-haven status in dramatic sell-off? 'The current situation is not only chaotic, it's crazy,' said Carsten Brzeski, global head of macro at ING. 'While this might bring some short-term relief for European exporters, the harm to confidence will last,' he added. European Commission President Ursula von der Leyen called the move 'an important step to stabilising the global economy', reaffirming the EU's commitment to 'constructive talks with the US' and its broader aim of 'achieving frictionless and mutually beneficial trade". Gian Marco Salcioli, head of global market strategy at Intesa Sanpaolo, described the move as a textbook case of brinkmanship, a strategy involving a calculated escalation to force opposing parties into negotiation. He pointed to stress in US Treasury markets as a key trigger for the White House's shift in tone. Rising yields, he said, had flashed red warnings in Washington, prompting a rethink of the current tariff escalation path. Salcioli questioned whether a campaign of de-dollarisation was truly compatible with Trump's "America First" vision, suggesting Wednesday's announcement may have been the administration's first meaningful concession to market pressure. "Bond investors are the economy's bond vigilantes. ... So if the fiscal and monetary authorities won't regulate the economy, the bond investors will," analyst Ed Yardeni said. Goldman Sachs analysts dropped their US recession forecast on Wednesday, shortly after President Trump's unexpected trade policy shift. Share price gains were broad-based across the continent. In the Euro Stoxx 50 index, Deutsche Bank rose 13.09%, Kering gained 12.93%, ASML Holding climbed 12.75%, Banco Bilbao Vizcaya Argentaria was up 12.20%, Siemens added 12.15%, Philips increased 11.95%, Airbus gained 11.85%, UniCredit rose 11.72%, and Adidas advanced 11.68%. Germany's DAX was led by Infineon, which surged 15.20%, followed by HeidelbergCement with a 14.46% gain. Puma was up 13.45% and Zalando rose 12.72%. In Italy, Prysmian posted a 15.40% jump, Iveco Group added 12.89%, Banca Generali climbed 12.79%, and STMicroelectronics rose 12.63%. France's CAC 40 was bolstered by ArcelorMittal, which surged 13.56%, followed by Kering, which rose 12.93%. STMicroelectronics saw a 12.22% increase, Publicis rose 12.18%, Airbus gained 10.95%, and Schneider Electric was up 10.26%. Spain's Ibex 35 saw Bankinter rise 14.48%, while Banco Sabadell rose 11.88%. CaixaBank was up 11.29%, and Banco Santander climbed 11.26%.
Euronews
10-04-2025
- Business
- Euronews
European markets eye historic rally following Trump's tariff pause
ADVERTISEMENT European markets staged a historic rally in early morning trading on Thursday, tracking Wall Street's euphoric surge after US President Donald Trump unexpectedly announced a 90-day pause on tariffs for countries that have not retaliated against US trade measures, excluding China. The Euro Stoxx 50, which tracks blue-chip companies across the eurozone, jumped 8.2% to nearly 5,000 points, on pace for its strongest session since the onset of the pandemic in March 2020. The broader Euro Stoxx 600 rose 7.4%, while national indices across the continent saw similarly powerful gains. Germany's DAX rallied 8.5%, Italy's FTSE MIB climbed 8.4%, France's CAC 40 advanced 8.6%, and Spain's Ibex 35 surged 8.3%, with all benchmarks poised to register their biggest one-day gains in over four years. The rally followed a dramatic shift in US trade policy late on Wednesday, when President Trump lowered tariff rates — retaining a universal 10% 'reciprocal' levy for all non-retaliating nations, offering a three-month negotiation window. Meanwhile, tariffs on Chinese imports were raised to 125% in response to Beijing's own recent retaliatory measures. Related European markets move lower as Trump's sweeping tariffs take effect Why are US Treasury bonds losing their safe-haven status in dramatic sell-off? 'The current situation is not only chaotic, it's crazy,' said Carsten Brzeski, global head of macro at ING. 'While this might bring some short-term relief for European exporters, the harm to confidence will last,' he added. European Commission President Ursula von der Leyen called the move 'an important step to stabilising the global economy', reaffirming the EU's commitment to 'constructive talks with the US' and its broader aim of 'achieving frictionless and mutually beneficial trade". Gian Marco Salcioli, head of global market strategy at Intesa Sanpaolo, described the move as a textbook case of brinkmanship, a strategy involving a calculated escalation to force opposing parties into negotiation. He pointed to stress in US Treasury markets as a key trigger for the White House's shift in tone. Rising yields, he said, had flashed red warnings in Washington, prompting a rethink of the current tariff escalation path. Salcioli questioned whether a campaign of de-dollarisation was truly compatible with Trump's "America First" vision, suggesting Wednesday's announcement may have been the administration's first meaningful concession to market pressure. "Bond investors are the economy's bond vigilantes. ... So if the fiscal and monetary authorities won't regulate the economy, the bond investors will," analyst Ed Yardeni said. Goldman Sachs analysts dropped their US recession forecast on Wednesday, shortly after President Trump's unexpected trade policy shift. Share price gains were broad-based across the continent. In the Euro Stoxx 50 index, Deutsche Bank rose 13.09%, Kering gained 12.93%, ASML Holding climbed 12.75%, Banco Bilbao Vizcaya Argentaria was up 12.20%, Siemens added 12.15%, Philips increased 11.95%, Airbus gained 11.85%, UniCredit rose 11.72%, and Adidas advanced 11.68%. Germany's DAX was led by Infineon, which surged 15.20%, followed by HeidelbergCement with a 14.46% gain. Puma was up 13.45% and Zalando rose 12.72%. ADVERTISEMENT In Italy, Prysmian posted a 15.40% jump, Iveco Group added 12.89%, Banca Generali climbed 12.79%, and STMicroelectronics rose 12.63%. France's CAC 40 was bolstered by ArcelorMittal, which surged 13.56%, followed by Kering, which rose 12.93%. STMicroelectronics saw a 12.22% increase, Publicis rose 12.18%, Airbus gained 10.95%, and Schneider Electric was up 10.26%. Spain's Ibex 35 saw Bankinter rise 14.48%, while Banco Sabadell rose 11.88%. CaixaBank was up 11.29%, and Banco Santander climbed 11.26%.
