Filenews 10 April 2025
Indices on European boards soared on Thursday as markets react to the US president's latest announcement to freeze his reciprocal tariffs in several countries, with the imposition of the flat rate of 10% applicable to all US trading partners for 90 days – with the sole exception of China.
In the wake of Trump's statements, the Stoxx records a jump of 5.93% to 503.68 points. In a volatile week for markets marked by sharp movements, the pan-European Stoxx 600 index closed the previous session down 3.5% to its lowest level since January 2024.
In Germany, the DAX records strong gains of 8.03% to 21,260.50 points, while in France the CAC 40 climbs to 7,304.59 points, up 6.43%. In London, the FTSE 100 gains 5.97% to 8,140.10 points.
On the periphery, Spain's IBEX 35 moves up 8.38% to 12,814.47 points while Italy's FTSE MIB gains 8.43% to 35,456.00 points.
Yields on eurozone government bonds are also jumping, while markets are limiting their estimates for the interest rate cuts that the European Central Bank will make this year after the US government announced that it would freeze tariffs for a period of 90 days in order to continue negotiations with its trading partners.
The yield on the German 10-year gains 9.5 basis points to 2.53%. On Friday, it had reached 2.487%, the lowest since March 4. The spread between the Italian and German 10-year yields falls to 116 bps from about 130 bps the previous day.
Markets are pricing the ECB's interest rate on the deposit facility near 1.8% in December, up from 1.65% on Wednesday and 1.9% last week, ahead of Trump's tariff announcements.
On Wall Street, stocks rallied after Trump's announcement, with the S&P 500 jumping more than 9% during Wednesday's session. The Dow Jones Industrial jumped 7.87% – its biggest percentage rise since March 2020 – and the Nasdaq soared more than 12%, marking the biggest daily rise since January 2001 and the second-best day in history.
capital.gr
