European Stocks Rally Amid Trump Comments, Central Bank Support

European stocks rallied sharply following U.S. President Donald Trump's softened stance on Federal Reserve Chair Jerome Powell and his indication that tariffs on China could be reduced, which eased investor concerns over monetary policy and trade tensions. The STOXX 600 and major national indices in Germany, France, and the UK posted significant gains, boosted by strong earnings reports and renewed optimism in global markets. Central banks in Europe contributed to this positive sentiment by signaling ongoing support and, in the ECB's case, implementing interest rate cuts to lower borrowing costs and stimulate economic activity. Investors interpreted these moves as commitments to stability and growth, which further improved confidence in the region's economic outlook. Meanwhile, market watchers remain cautious about ongoing trade negotiations, as further tensions could impact the upward momentum. Financial and industrial sectors led the gains, reflecting expectations of increased lending, investment, and consumer spending.