European stocks rose on Thursday, with the STOXX 50 gaining 0.9% and the broader STOXX 600 up 0.5%, as a wave of global risk-on sentiment lifted markets amid easing trade war concerns and robust corporate earnings.
European stocks rise as Trump's tariffs blocked
Investors welcomed a landmark decision from the US Court of International Trade, which ruled that former President Donald Trump had exceeded his authority in imposing wide-ranging reciprocal tariffs. The court also ordered the administration to halt their collection, a move seen as a step toward de-escalating global trade tensions. While the U.S. government has appealed the ruling, the decision temporarily eased fears of renewed tariff escalations, fueling optimism for a more stable and cooperative global trade environment.
Adding to the bullish momentum, Nvidia’s blockbuster earnings and a strong outlook for the current quarter sent ripples across equity markets. CEO Jensen Huang emphasized that the AI computing market remains on track for “exponential growth,” reinforcing investor confidence in the sector’s long-term prospects. The technology sector led gains in Europe, rising more than 1.5%, with heavyweight names like SAP climbing 1.5%, ASML Holding surging 3.1%, and Dassault Systèmes up 1%. Investors also rotated into growth and innovation-driven names, reflecting confidence in the tech-led expansion narrative.
Gains were not limited to technology
Cyclical sectors such as industrials and consumer discretionary also advanced, benefiting from the improved global growth outlook. Meanwhile, bond yields across the eurozone held steady as markets digested mixed signals from recent central bank commentary, balancing hopes of rate cuts with persistent inflation risks.
Overall, Thursday’s rally reflected growing investor optimism about the resilience of the global economy, aided by judicial moves curbing protectionism and a tech sector that continues to outperform. With sentiment improving and earnings season in full swing, European equities appear well-positioned for further upside—barring any sharp macroeconomic surprises.
