FX.co ★ European Stocks Close Sharply Higher

European stocks concluded Wednesday's trading session with notable gains, ending a three-day decline. This upward movement was influenced by the anticipation that the United States might adopt reduced tariff rates following its recent trade agreement with Japan. The Eurozone's STOXX 50 index increased by 1.1% to reach 5,350, while the broader pan-European STOXX 600 index also rose by 1.1% to 550. President Trump adjusted tariffs on Japan to 15%, down from the previously threatened 25%, despite the lack of significant advancement in trade discussions between the EU and the US. The development regarding auto tariffs with Japan, which has significant ramifications for automotive manufacturers, resulted in a surge in shares for companies like BMW, Stellantis, Mercedes Benz, and Volkswagen, between 9% and 4%. Additionally, Prosus experienced a 4.5% increase after announcing updates to its share buyback initiative. Meanwhile, UniCredit saw a 3.5% rise following the release of its financial results, despite indicating that resistance from Rome led the bank to abandon its acquisition of Banco BPM. Conversely, SAP's shares fell by 4.3% due to less optimistic than expected future projections, and Nokia's stock plummeted by 7% following its earnings report.