Global Stocks Rise As Donald Trump Postpones EU Tariffs — Euro Hits 1-Month High, Sensex Up 455 Points

Global stock markets gained on Monday after US President Donald Trump postponed his proposed 50% tariffs on European Union goods, providing temporary relief to investors.

The tariffs, originally set to take effect on June 1, have now been delayed until July 9, giving the EU more time to negotiate a deal.

Global Markets React Positively

The MSCI World Index rose 0.2%, and the pan-European STOXX 600 index jumped 0.9%, recovering losses from Friday. European auto stocks, which are sensitive to tariffs, rebounded strongly—Stellantis rose 2.5%, Mercedes gained 1.9%, and Valeo surged 4.9%.

Luxury brands like LVMH and Kering also saw gains, while technology and banking stocks added momentum to the rally.

Euro Strengthens as Dollar Weakens

Currency markets also reacted. The euro climbed to a one-month high of $1.1418 before settling slightly lower at $1.1375, marking a 10% gain for the year. The British pound rose to its highest level since February 2022, reaching $1.356.

Analysts attributed the dollar’s weakness to Trump’s unpredictable trade policies, rising US debt levels, and growing expectations of a recession in the United States.

Also Read: Turkish Airlines Stock Plunges 10% — What's The Real Trigger?

Sensex and Nifty Rise in India

In India, the stock markets mirrored global trends. The BSE Sensex jumped 455 points (0.56%) to close at 82,176.45, hitting its highest level in over a week. During intraday trade, it had surged over 770 points.

The NSE Nifty gained 148 points (0.60%) to close at 25,001.15.

Buying in auto and IT stocks helped lift Indian markets, along with easing global trade tensions and positive macroeconomic factors.

Asian Markets Mixed, US Futures Jump

Asian markets were mixed. Japan’s Nikkei 225 climbed 1%—its best one-day gain in nearly two weeks—after Trump signalled support for Nippon Steel’s takeover of US Steel.

However, China and Hong Kong markets ended lower due to pressure on auto stocks and concerns over potential tariffs on Apple suppliers.

Meanwhile, US futures pointed to a strong opening when markets reopen after the Memorial Day holiday. Dow futures were up 432 points, S&P 500 futures rose 68 points, and Nasdaq futures jumped nearly 1.4%.