European markets rebounded sharply on Monday, with the pan-European Stoxx 600 index climbing 2.2% as all sectors turned green. Technology stocks led the rally, gaining 3%, supported by U.S. President Donald Trump’s weekend decision to temporarily exempt smartphones, computers, and other tech items from new import tariffs. Oil and gas, banks, and other sectors also posted strong gains despite broader concerns over trade policy and declining oil price forecasts.
The temporary tariff relief eased investor fears that had recently rattled global markets. Trump’s evolving and aggressive tariff strategy has driven extreme volatility, with the Stoxx 600 shedding over 8% so far in April, while the S&P 500 lost over 4%. Officials confirmed 20 tech-related product categories would be exempt from Trump’s new 125% tariff on Chinese goods and a baseline 10% tariff on imports from other countries. However, the 20% tariff on all Chinese goods remains in place.
The move provided a tailwind for global markets, with Asian tech stocks also rallying. Companies tied to Apple and Nvidia, such as Hon Hai, Advantest, and LG Innotek, saw significant gains. However, analysts like Dan Ives of Wedbush warned of lingering “mass uncertainty” surrounding Trump’s broader trade intentions, calling the situation a “high-stakes poker game” between Washington and Beijing.
Meanwhile, investors are bracing for the kickoff of Q1 earnings season, with major names like LVMH and Goldman Sachs reporting. Bond and currency markets have also reacted, with the euro and pound strengthening against a weakened U.S. dollar, and U.S. Treasury yields climbing. Despite the market rebound, Deutsche Bank analysts noted this remains one of the most turbulent financial periods in recent memory, underscoring the fragile sentiment among investors.
Source: CNBC