LIVE MARKETS-Euphoric markets

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EUPHORIC MARKETS

Donald Trump's surprise tariff reprieve coming only a few days after the U.S. President slapped shock levies on trading partners across the globe has sparked an extreme and rapid shift in market mood. In Europe, the STOXX 600 was up over 7% in early deals, setting the index for its biggest surge since 2020.

From a doom and gloom narrative about an upcoming recession prevailing only yesterday and exacerbated by a savage selloff of Treasuries, we're now seeing a bout of euphoria over the view that Trump will not pursue the hard line at any cost.

"Trump isn't impervious to market pain," writes Bhanu Baweja, a strategist at UBS.

The sense of optimism might not last too long, though, as investors still bet tariff damage to corporate earnings and the economy is going to materialise.

"We don’t expect the highs to be tested and would recommend selling rallies until we learn more," adds Baweja.

Shortly after the open, 87% of STOXX constituents were trading in positive territory. Banks, energy, miners and industrials led the surge, rising around 8-9%. Many stocks rallied over 10%.

(Danilo Masoni)

EARLIER ON LIVE MARKETS:

BEFORE THE BELL: BOUNCING LIKE IN COVID TIMES CLICK HERE

SIGNS OF TROUBLE IN THE RELIEF RALLY CLICK HERE