Source: Sharecast
“Hopes of progress on trade deals were bolstered by reports that an agreement with India was near, leading to a strong opening hour of trading for US markets," said IG chief market analyst Chris Beauchamp.
"Wall Street continues its rebound from the Powell-panic earlier in the week, and the continued decline in the Vix points towards a relaxation of nerves for the time being. Still, until the deals are agreed, these gains remain fragile. Hopes are high that Alphabet can report some reassuring numbers too this evening, repeating Tesla’s trick from earlier in the week.”
The pan-regional Stoxx 600 index gained 0.36% to 518.61 points. Germany’s DAX added 0.47% while Spain’s Ibex 35 dipped 0.22% as both bourses pared morning losses.
Markets rallied on Wednesday after US Treasury Secretary Scott Bessent hinted at the possibility of a “big deal” to drastically de-escalate the tariff war with China.
Bessent said the White House was prepared to discuss the reduction of trade imbalances with Beijing, after Washington slapped 145% tariffs on Chinese goods.
Hargreaves Lansdown analyst Matt Britzman said: “European markets are taking a breather this morning … after a strong showing yesterday. The investing world is back to hanging onto every word out of the White House, but with such a confusing and often contradictory stance on tariffs, volatility is all we can really guarantee.”
In economic news, German business morale unexpectedly rose in April, according to the latest IfO survey, although future expectations were gloomier as companies remained uncertain about how the tariff war escalation with the US would unfold.
The Ifo institute said its business climate index rose to 86.9 in April from 86.7 in March, beating forecasts for a decrease to 85.2. The expectations index fell to 87.4 from 87.7, also better than the 85.0 expected by analysts.
"Uncertainty among companies has increased. The German economy is preparing for turbulence," said Ifo president Clemens Fuest.
In equity news, Kering shares dipped after the French luxury goods group and Gucci owner posted lower than expected first-quarter sales and warned of further macroeconomic headwinds.
Azelis fell sharply after first-quarter earnings at the chemicals and food ingredient supplier disappointed.
Nokia slumped as the telecoms firm reported first-quarter profit well below market expectations and flagged a short-term disruption from US tariffs with an estimated hit of €20m - €30m to second-quarter earnings.
Nestle shares edged up as the food giant posted better-than-expected first-quarter organic sales growth on the back of price hikes and said the indirect impact of US tariffs was "unclear".
Adidas shares slipped after the German sportswear company reported first-quarter sales and profit above expectations.
