BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European moved sharply higher during on Thursday after U.S. President Donald Trump announced a 90-day pause for countries hit by higher U.S. tariffs, with the exception of China.
European Commission President Ursula von der Leyen welcomed Trump's move and said the halt on reciprocal tariffs is 'an important step towards stabilizing the global economy,' adding, 'Clear, predictable conditions are essential for trade and supply chains to function.'
ECB policymaker Francois Villeroy de Galhau emphasized today that Trump's policies in recent weeks have eroded confidence in the U.S. dollar and praised Europe's foresight in establishing its own independent monetary system 25 years ago.
'Thank God that Europe. created the Euro,' he noted, adding that the bloc now enjoys 'monetary autonomy' that allows ECB to manage interest rates in a way that diverges from U.S. policy.
After plunging by 3.5 percent, the pan European STOXX 600 Index surged 3.7 percent to 487.28, recording its biggest gain in three years.
The German DAX also soared by 4.5 percent, the French CAC 40 Index shot up by 3.8 percent and the U.K.'s FTSE 100 Index jumped by 3.0 percent.
Buying was seen across the broad, with beaten-down banks, mining and energy stocks leading the rebound.
Volkswagen jumped by 2.1 percent after announcing it has nearly doubled its all-electric vehicle (BEV) deliveries in Europe in the first quarter of 2025.
Meanwhile, Barry Callebaut shares plummeted by 21.5. The Swiss chocolate maker lowered its annual volume guidance, citing 'unprecedented volatility' in cocoa bean prices.
Tesco also slumped by 6.2 percent after the British food retailer said it expects to make lower profits this year amid intensifying competition in the market.
In economic news, U.K. housing market conditions weakened in March as demand faded following the end of the stamp duty holiday amid rising concerns about the economic outlook, survey data showed earlier today.
New buyer demand turned negative and hit the lowest since September 2023, the Residential Market Survey from the Royal Institution of Chartered Surveyors showed. The index slid sharply to -32 percent in March from -16 percent in February.
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