European stock markets are extending their rebound, with momentum building across the region.
In London, the FTSE 100 index is up 2%, or 153 points, reaching 7,852—a strong move that pulls it away from its lowest level in over a year.
However, as the chart shows, this recovery still makes only a modest dent in the sharp losses sustained since Donald Trump unveiled new tariffs last week.
The pan-European Stoxx 600 index is up 1.75%, buoyed by strong performances in Asia-Pacific markets overnight. (For context: Japan’s Nikkei surged 6% after the country secured priority tariff negotiations with President Trump—becoming the first major economy to do so.)
Joshua Mahony, analyst at Scope Markets, commented:
“With Trump rejecting claims that he’ll delay tomorrow’s targeted tariffs by 90 days, traders should brace for renewed volatility as the week unfolds.”
Still, sentiment has been lifted by reports of a proposed $1 trillion U.S. defence spending bill, which has boosted shares in European defence firms such as Rolls-Royce and Rheinmetall.
While President Trump has rejected the EU’s offer of a zero-tariff deal on cars and select industrial goods, analysts suggest this could still pave the way for progress toward a broader free trade agreement.
