Stocks, euro rally as Trump delays 50% EU tariffs
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The news: European stocks climbed on Monday after US President Donald Trump abruptly extended his threat to hit EU goods with a 50% tariff by more than one month.
The numbers: The Stoxx 600 rose 1% on market open, recouping Friday’s losses after Trump announced the sharp tariff hikes.
The Stoxx 50 also climbed 1.5% while Germany’s Dax index rose 1.7% during morning trading. Against the safe-haven yen, the euro rose 0.3% to 162.60 yen, and added 0.2% against the US dollar to reach its highest since 30 April at USD1.1382 ($1.75).
Europe’s automobiles and parts index, SXAP, which is sensitive to tariff-related pressures, rebounded by 1.4%. Mercedes rose 2.1%, BMW climbed 2% and Volkswagen advanced 1.9%. Tariff-exposed luxury stocks also gained during morning trading.
Trading volumes were light as US and UK markets were closed on Monday due to public holidays. US stock futures rose 1%.
The context: Trump extended the deadline for tariffs to 9 July from 1 June on Sunday evening US time, as he agreed after European Commission President Ursula von der Leyen told him that the 27-nation bloc needed more time to produce a deal.
