European stocks surge after Trump delays new tariffs, positive for market.

From Morningstar: 2025-04-10 10:12:00

US President Donald Trump announced a 90-day halt to most new tariffs, causing European stocks to surge before a weaker US market open. The Stoxx Europe 600 rose up to 7% initially but trimmed gains later. The S&P 500 opened 2.5% lower, Nasdaq lost 3%.

European banks, including UniCredit and Barclays, led the rebound. Morningstar’s Michael Field views it as a positive for markets, but the trade war impact may linger. Japan’s Nikkei closed 9% higher, while Chinese stocks did not participate in the rally.

Trump’s announcement paused most tariffs for 90 days, imposing a reduced 10% “reciprocal tariff” on countries that did not retaliate, except China. US tariffs on China increased to 125%. 75 countries will engage with US on mitigating trade barriers.

Bond yields fell on Thursday, offsetting Wednesday’s selloff that peaked at 4.5%. The 10-year Treasury yield was at 4.30%, 30-year at 4.77%. US government bonds faced uncertainty as safe assets, leading to hedge fund liquidations. German bunds benefited from the flight from US securities.



Read more at Morningstar: European Stocks Rally After Trump Puts Tariffs on Hold