European stocks showed signs of recovery on Friday, edging up 0.5% following a turbulent week marked by sharp swings in global equities.
This volatile period was driven largely by erratic tariff changes by the United States and its major trading partners, leading to fears of further economic damage from an ongoing trade war.
The pan-European STOXX 600 index rebounded after reaching its lowest point in nearly 18 months earlier in the week. U.S. President Donald Trump’s actions – imposing “reciprocal” tariffs on various countries, only to later suspend some of those levies – triggered chaotic movements in markets worldwide, erasing trillions of dollars in value. Despite this, European stocks gained between 0.3% and 0.7% across regional indexes, including those in Germany, Spain, France, and the UK, which recorded their strongest one-day gains since 2022.
EU Prepares for Further Tariff Negotiations with U.S.
The volatility of the past few days saw the European Union pause its retaliatory tariffs on U.S. goods following Trump’s suspension of some levies. This pause has opened a window for the EU to consider negotiating a potential deal with Washington or preparing countermeasures in case the tariff war resumes. European Union finance ministers are set to meet on Friday to discuss how best to utilize the time to either strike a deal or brace for the effects of prolonged U.S. tariffs.
Escalating U.S.-China Trade War Adds Pressure
Meanwhile, tensions between the U.S. and China escalated this week, with both countries hiking tariffs on each other’s goods, further intensifying the trade conflict. The continued back-and-forth between the two largest global economies has placed additional pressure on markets, amplifying the uncertainty surrounding international trade relations and economic stability.
Corporate Struggles Amid Trade Tensions
On the corporate front, several companies faced challenges as a result of the market turbulence. Zurich Insurance saw its shares tumble 5.4% ahead of its annual general meeting, while Stellantis, the carmaker, experienced a 2.2% drop in shares after reporting a 9% decline in first-quarter shipments compared to last year. These declines reflect the broader impact of trade uncertainties on company performance, particularly in industries reliant on international trade and supply chains.
Kosta Gushterov
Reporter at Coindoo
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Source: https://coindoo.com/european-stocks-recover-as-volatile-week-ends/