European Stocks Surge on Tariff Deal Hopes, Trump Plans Deal

European stock markets experienced a rebound following a four-day losing streak, buoyed by hopes of a possible de-escalation in the ongoing trade tensions with the United States. The Stoxx Europe 600 index rose by 2.72%, with significant gains in insurance, financial services, and travel sectors. US President Donald Trump announced he would pause plans for higher tariffs on several trade partners, which alleviated some fears regarding an escalating trade war. However, the EU remains cautious, with plans for retaliatory tariffs on US imports set to take effect if negotiations do not progress. Chinese officials expressed a firm stance against US tariffs, promising to 'fight to the end' in response to perceived American aggression. Overall, while markets are showing signs of recovery, investor sentiment remains fragile amid ongoing uncertainties.