European Markets Soar 4% Tracking Gains On Wall Street, Bond Yields Advance

Bridgette Randall
10 Apr, 2025
London

Stock market indexes in Europe soared, tracking gains on Wall Street in the previous session after the U.S. president announced a dramatic U-turn on his widely promoted trade policy. 

Benchmark indexes in Frankfurt, Paris, Milan, and London roared back and gained between 5% and 7%, as trade tensions between the European Union and the U.S. eased, for now. 

Donald J. Trump announced the pause of reciprocal tariffs on all imports only hours after they went into effect. 

However, the Trump administration slapped additional tariffs on China, increasing the total to 125%. 

The base tariffs of 10% will remain in place on all other imports, except a 25% levy on shipments from Mexico and Canada that are not compliant with the U.S.-Mexico-Canada accord. 

European stock markets advanced, bond yields edged higher, and the euro and the pound retained an upward bias as the dollar continued to lose ground.  

Donald Trump was forced to announce the halting of steep tariffs on key trading partners and other exporting nations after wild swings in the bond market raised worries that the upcoming bond auction is likely to fail amid weak interest from foreign central banks. 

Central banks of key trading partners, including Canada, Japan, the European Union, and China, are key buyers of the U.S. dollar-denominated debt issued by the federal government. 

The sharp escalation in trade tensions played a key role in convincing foreign buyers of U.S. debts, which provides critical capital to finance the U.S. federal government deficit. 

 

Europe Indexes and Yields

The DAX index increased by 7.1% to 21,062.83, the CAC-40 index edged higher 6.8% to 7,329.46, and the FTSE 100 index advanced by 4.6% to 8,029.37.

Bond yields advanced after investors dialed down on a rate cut expectations after the next policy meeting ending on April 17.  

The yield on 10-year German bonds inched higher to 2.69%, French bonds increased to 3.44%, the UK gilts moved down to 4.75%, and Italian bonds edged lower to 3.88%.

The euro increased to $1.10; the British pound was higher at $1.29; and the U.S. dollar was lower and traded at 85.13 Swiss cents.

Brent crude decreased $1.54 to $63.94 a barrel, and the Dutch TTF natural gas was higher by €2.38 to €35.84 per MWh.

 

Europe Movers 

Banks, automobile makers, and consumer goods exporters led the gainers in trading.

Adidas jumped 11% to €206.0, Puma SE advanced 10.5% to €20.29, and Pandora AS advanced 11.1% to DKK 982.20.

Deutsche Bank jumped 9.1% to €19.59, UniCredit SpA advanced 9.4% to €47.59, UBS Group AG increased 7.2% to CHF 23.60, and BNP Paribas SA gained 8.4% to €69.25.

Mercedes Benz Group AG gained 4.9% to €49.0, BMW AG increased 5.5% to €67.02, and Porsche Automobil Holding SE added 3.3% to €32.46.