European stock markets rose today after the US announced exemptions from sweeping tariffs for smartphones, laptops, semiconductors and other electronic products, tempering trade war fears.
Despite US President Donald Trump suggesting that the exemptions could be short-lived, European stocks rallied around 2% at the start of the week, tracking gains in Asia and on Wall Street.
Frankfurt had jumped 2.5% in lunchtime trade, while Paris gained 2.2% and London advanced 1.7%.
Dublin’s ISEQ index also moved higher today, adding 2.4% by lunchtime. Shares in Dalata Hotel Group, Ryanair and AIB were making strong gains.
On Friday, the US had appeared to slightly dial down the pressure on its trade war with Beijing, listing tariff exemptions for electronic products for which China is a major source.
The announcement provided an injection of optimism for investors in wake of rollercoaster week for equities as the world’s two largest economies exchanged tit-for-tat levies.
US levies imposed on China have risen to 145%, and Beijing set a retaliatory 125% band on US imports.
But Trump and some of his top aides said Sunday that the exemptions had been misconstrued and would only be temporary as his team pursued fresh tariffs against many items on the list.
“Just when it seemed the tariff chaos couldn’t get any worse, tech investors have spent the weekend scrambling to make sense of a whirlwind of confusing – and at times contradictory – messages coming out of the White House,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.
“Despite the messy rollout, what’s caught investors’ attention is the news that these products won’t be hit with the harsh China-specific tariffs,” he added.
Meanwhile, Japan’s Nikkei index closed 1.2% higher, led by iPhone-related shares after the US excluded smartphones and other electronics from steep tariffs.
Wall Street posted solid gains on Friday night as big banks kicked off first-quarter earnings season and investors closed the book on a turbulent week of wild swings driven by the chaos of US President Donald Trump’s trade war.
The S&P 500 gained 1.7%, while the Nasdaq Composite climbed 1.97% and the Dow Jones rose 1.5%.
