Customs Tariffs Suspended: European Stock Markets Are Experiencing an Increase

There is a Rising Atmosphere in European Markets

During the day, there is significant relief seen in European markets. In the first hours, the Stoxx Europe 600 index, which increased by 1.1%, rose to 609.5 points. Germany’s leading DAX 40 index is trading at 24,874 points, reflecting a 1.2% increase. In the UK, the FTSE 100 index has gained 0.8%, reaching 10,214 points. Meanwhile, France's CAC 40 index is at 8,168 points, representing a 1.2% rise, while Spain's IBEX 35 index has reached 17,619 points. In Italy, the FTSE MIB 30 index is also showing an increase of 0.8%, trading at 44,849 points.

Trump Announces Suspension of Tariffs

US President Donald Trump made significant remarks during a speech at the World Economic Forum held in the Swiss town of Davos. He stated that the tariffs planned to take effect on February 1, 2023, targeting European countries, will not be implemented in an effort to alleviate concerns regarding Greenland. This decision not only affects ongoing negotiations related to Trump's intent to acquire Greenland on national security grounds but also positively impacted stock market investors.

Impact of Geopolitical Developments

After a meeting with NATO Secretary General Mark Rutte, Trump announced that they have established a new framework for an agreement concerning Greenland and the Arctic region. Analysts emphasized that important macroeconomic indicators, such as growth and personal consumption expenditure data in both Europe and the US, would be influential in the markets for the remainder of the day.

Particularly, Trump's previous announcements regarding a planned 10% increase in tariffs on imports from Europe, which were set to rise to 25% on June 1, have impacted the market. This situation stands out as a significant development closely monitored by investors.