Piazza Affari Rallies with Europe, US Tariffs on Hold
european Markets Surge on US Tariff suspension
European stock markets rallied Thursday following the U.S.management’s 90-day suspension of mutual tariffs. The gains were led by technology, industrial, and banking sectors.
Von der Leyen Hails Tariff Pause
European Commission President Ursula von der Leyen welcomed the U.S. decision, calling it a crucial step toward stabilizing the global economy. “I have always supported a zero to zero tariff agreement between the European Union and the United States,” von der Leyen said.
Details of the Tariff Suspension
While suspending mutual tariffs for 90 days to facilitate negotiations, the U.S. also increased tariffs on Chinese products by 125%. U.S.Treasury Secretary Besent stated the tariff withdrawal was intended to bring countries to the negotiation table. However, a 10% duty remains on most U.S. imports,and tariffs on automobiles,steel,and aluminum are unaffected.
EU Retaliation
The EU Council previously voted to impose duties of up to 25% on 21 billion euros of U.S. goods, including soybeans and motorcycles, in response to U.S. tariffs on steel and aluminum. The retaliatory measures disproportionately affect products from Republican states.
FOMC Concerns
Federal Open Market Committee (FOMC) reports indicated concerns about rising inflation amid growth and employment gains. Officials emphasized the need for a difficult compromise.Tom Barkin of the Federal Reserve Bank of richmond noted the Fed’s reaction function addresses medium- to long-term economic adjustments, with the duration of tariff policy being crucial for evaluation.
China’s Deflation
China’s inflation rate in March was slightly lower than expected, reaching -0.1% year-over-year (compared to expectations of no change) and -0.4% month-over-month (compared to -0.2% expected). This marks the second consecutive month of deflation, with a further decline in production prices.
Currency and commodity Markets
The euro edged higher against the U.S. dollar, trading at $1.099. Gold rose 1.12% to $3,17.3 per ounce. Light sweet crude oil fell 1.17% to $61.62 per barrel.
Bond Market
The spread between Italian and German bonds narrowed to 115 basis points, a decrease of 10 basis points.The yield on 10-year Italian BTPs (government bonds) stood at 3.80%.
European Stock Market Performance
Major European markets saw meaningful gains:
- Frankfurt’s DAX: Up 7.03%
- London’s FTSE: Up 5.06%
- Paris’s CAC 40: Up 6.76%
Piazza Affari Leads Gains
Milan’s Piazza Affari led the gains,with the FTSE MIB index up 7.17%. The FTSE Italia All-Share index rose to 37,219 points, the FTSE Italia Mid Cap gained 5.4%, and the FTSE Italia Star increased by 5.91%.
Top Performers on Piazza Affari
Notable performers among blue-chip stocks on Piazza Affari included:
- Stellantis: Up 12.81%
- Prysmian: Up 11.81%
- STMicroelectronics: Up 11.80%
- Fineco: Up 11.61%
FTSE MIDCAP Leaders
Leading stocks in the FTSE MIDCAP index included:
- technoprobe: Up 12.98%
- LU-VE Group: Up 10.27%
- d’Amico International Shipping: Up 9.35%
- De’ Longhi: Up 8.90%
April 10, 2025
European Market Surge After US Tariff Suspension: Your Top Questions Answered
Q: What happened to European stock markets?
European stock markets experienced a rally on Thursday following the U.S. management’s 90-day suspension of mutual tariffs. This positive movement was primarily driven by gains in the technology, industrial, adn banking sectors.
Q: Why did European markets surge?
The primary catalyst for the surge was the U.S. decision to temporarily suspend certain tariffs on goods from the European Union.This move signaled a potential easing of trade tensions, which has a positive effect on investor sentiment.
Q: Who welcomed the US decision to suspend tariffs?
European Commission President Ursula von der Leyen welcomed the U.S. decision, calling it a crucial step toward stabilizing the global economy. She has consistently supported a “zero-to-zero” tariff agreement between the European Union and the United States.
Q: what are the key details of the tariff suspension?
The U.S. suspended mutual tariffs for 90 days to facilitate negotiations.However, it’s crucial to note that the U.S. concurrently increased tariffs on chinese products by 125%. Also, a 10% duty remains on most U.S. imports, and tariffs on automobiles, steel, and aluminum were unaffected by the suspension.
Q: How has the EU responded to previous U.S. tariffs?
The EU Council had previously authorized duties of up to 25% on 21 billion euros of U.S. goods, including soybeans and motorcycles, in response to U.S. tariffs on steel and aluminum.
Q: What did the FOMC reports indicate?
Federal open Market Committee (FOMC) reports revealed emerging concerns about rising inflation amid growth and employment gains. Officials emphasized the need for a difficult compromise. One official noted that the duration of tariff policy is crucial for economic evaluation.
Q: What’s happening with China’s inflation and deflation?
China’s inflation rate in March was slightly lower than expected, registering -0.1% year-over-year and -0.4% month-over-month. This marks the second consecutive month of deflation.
Q: how did the Euro and other currency markets perform?
The euro edged higher against the U.S. dollar, trading at $1.099.
Q: How did the bond market react?
The spread between Italian and German bonds narrowed, decreasing by 10 basis points to 115 basis points. The yield on 10-year Italian btps (government bonds) stood at 3.80%.
Q: Which European stock markets saw the most meaningful gains?
Major european markets experienced meaningful gains, including:
Frankfurt’s DAX: Up 7.03%
London’s FTSE: Up 5.06%
Paris’s CAC 40: Up 6.76%
Q: Which market led the gains in Europe?
Milan’s Piazza Affari led the gains, with the FTSE MIB index up 7.17%.
Q: What were the top-performing stocks on Piazza Affari?
Notable performers among blue-chip stocks on Piazza Affari included:
Stellantis: up 12.81%
Prysmian: Up 11.81%
STMicroelectronics: Up 11.80%
Fineco: Up 11.61%
Q: what were the leading stocks in the FTSE MIDCAP index?
Leading stocks in the FTSE MIDCAP index included:
technoprobe: Up 12.98%
LU-VE Group: Up 10.27%
d’Amico International Shipping: Up 9.35%
* De’ Longhi: Up 8.90%
Q: Can you summarize the key market performances in a table?
Certainly. Here’s a summary of the gains, primarily focusing on market indices.
| Market Index | Performance |
|---|---|
| Frankfurt’s DAX | up 7.03% |
| London’s FTSE | Up 5.06% |
| Paris’s CAC 40 | Up 6.76% |
| FTSE MIB (Milan) | Up 7.17% |
| FTSE Italia All-Share | rose to 37,219 points |
| FTSE Italia Mid Cap | Gained 5.4% |
| FTSE Italia Star | Increased by 5.91% |