10.04.202511:17:36UTC+00European Stocks Rally on Tariff Pause Relief

European stock markets experienced a significant upswing on Thursday, with both the STOXX 50 and STOXX 600 indices nearly climbing by 6%. This surge was primarily driven by the suspension of tariffs announced by both the European Union and the United States, which alleviated worries about a potential global economic slowdown and increasing inflation. Notably, the STOXX 600 is headed for its largest single-day gain since March 2020. The European Union revealed a 90-day postponement of new tariffs on the United States, allowing a window for trade negotiations after U.S. President Trump chose to lower tariffs on nations that had not retaliated against his initial trade measures. The United States continues to impose a 10% baseline tariff on imports from all countries, including the EU, although certain exemptions are in place for products such as semiconductors, copper, lumber, pharmaceuticals, precious metals, energy, and crucial minerals. However, automotive products remain subject to a 25% tariff. The rally on Thursday was led by strong performances in banking, technology, and industrial sectors.