FX.co ★ European Shares Rise on Trade Optimism

On Wednesday, European stocks experienced a resurgence, marking their first gain in three sessions. The STOXX 50 Index advanced by 1%, while the broader STOXX 600 Index rose by 0.9%. This uptick followed the announcement of a trade agreement between the United States and Japan, which ignited optimism for future deals and a reduction in tariffs. President Trump revealed that Japan consented to a 15% tariff on its exports to the US and pledged to invest $550 billion in the US market, while also opening its markets to key American products. Additionally, President Trump indicated that representatives from the European Union were arriving for trade discussions today. Notable gains were observed among megacap stocks, including ASML Holding, up 1.4%, Nestle, up 0.7%, LVMH, up 2.4%, and Hermes, up 2.2%. The automotive sector also outperformed, with significant increases from Ferrari (1.6%), Mercedes-Benz (5.5%), BMW (4.6%), Porsche (5.1%), and VW (5.3%). Conversely, SAP shares declined nearly 4% after the company's financial results failed to meet investor expectations, despite reinforcing its yearly guidance.