Stock markets rally as Trump pauses tariffs; Europe and Asia surge despite Chinese countermeasures

Brussels – Trump‘s decision to suspend reciprocal tariffs for 90 days for most countries around the globe (China excluded, of course) is infusing new life into the stock markets, from East to West.

Meanwhile, the two largest economies launched an all-out tariff war, especially since Beijing activated this morning (April 10) the 84 percent counter-tariff on US-made goods in response to the 125 percent tariffs imposed by President Donald Trump’s administration on Chinese imports.

Asian markets responded enthusiastically thanks to investor confidence. The Tokyo and Taiwan stock markets, the most heavily penalized in recent sessions, led the recovery, jumping 8.46 percent and 9.22 percent, respectively. In Taipei, in particular, microprocessor giant TSMC soared 9.94 percent. Singapore (+5.53 percent) and Seoul (+5.46 percent) also did well, followed by Jakarta (+4.47 percent) and Bangkok (+3.44 percent). There was more limited progress in Shenzhen (+2.47 percent), Hong Kong (+1.8 percent), and Shanghai (+0.93 percent), but all in all, it is still remarkable considering Trump’s new round of tariffs on China.

European Stocks fared just as well opening just sharply higher following the impressive Wall Street comeback last night, when the S&P 500 index recorded its third-best day since the end of World War II. After days of sharp contractions, the pan-European STOXX 50 index futures advanced 7.7 percent,  London’s FYSE 100 6.2 percent, Frankfurt’s DAX 7.7 percent, the CAC 40 in Paris 6.5 percent, and Madrid’s IBEX 7.2 percent. Deutsche Bank market strategist Jim Reid spoke of a general euphoria following the suspension of tariffs and welcomed the de-escalation.

In Milan, Piazza Affari soared at the start of the session, with the FTSE Mib index jumping 8 percent and investors returning to buying stocks subject to furious selling in recent sessions. Prysmian shares advanced 13.3 percent, Stellantis 12.7 percent, STM 12.8 percent, Fineco 11.9 percent, Interpump 11.8 percent, and Mediolanum 11.3 percent. Among banks, Unicredit (+11 percent) led the rise, followed by Intesa (+10.1 percent) and Popolare di Sondrio (+9.8 percent). Iveco (+10.5 percent) and Cucinelli (+10.3 percent) posted double-digit rebounds. At the same time, utilities, defensive stocks that were less penalized during the selloff in recent days, limited their gains, with Italgas (+0.3 percent), Snam (+1.4 percent), and Terna (+1.6 percent) rising the least on the market.

Celebration is fair, but it is too early to declare victory. Despite the market rebound, the World Trade Organization warned about the medium term. “The trade war between China and the United States could cut trade in goods between the two countries by 80 percent. Given that the two economic giants are responsible for 3 percent of world trade, the conflict could severely damage the global economic outlook,” said Ngozi Okonjo-Iweala, the body’s director-general.