FX.co ★ European Stocks Close Sharply HIgher

European stocks experienced a significant uplift on Wednesday, aligning with the robust sentiment in global equity markets. This upward movement followed indications from the US Presidential administration regarding a potential reduction in tariffs on China in the near future. The Eurozone's STOXX 50 index rose prominently by 2.8% to reach 5,100, while the broader pan-European STOXX 600 climbed 1.8% to settle at 517. Both US President Trump and Treasury Secretary Bessent expressed optimism that the ongoing 145% tariffs would not lead to a prolonged trade embargo during the current administration, instilling confidence in risk assets worldwide and bolstering European stocks across various sectors. On the corporate front, SAP shares saw a remarkable increase of over 10%, fueled by strong financial results and a favorable outlook, propelling it to the largest market capitalization on the continent, surpassing the less favorable performance of LVMH and Novo Nordisk. Meanwhile, flash PMI data indicated a stagnation in private sector activity within the Eurozone.