European Markets Surge Amid Trade War Uncertainty

European stocks rebounded after a significant slump, driven by tensions over U.S. tariffs. Markets saw gains as the European Commission proposed counter-tariffs and European equities remained attractive despite a projected hit to GDP. Key sectors and companies saw significant growth amid ongoing market volatility.

European shares experienced a resurgence after four consecutive sessions of heavy losses, buoyed by reactions to recent U.S. tariffs. The STOXX 600 rose 2.7% after a significant slump of over 12% in previous sessions, even as fears of a global recession simmered.

The European Commission's proposed counter-tariffs aimed at U.S. goods, alongside a possible 'zero-for-zero' deal with Washington, offered markets some clarity. Key sectors reported gains, and despite concerns over a trade war-induced slowdown, stakeholders saw potential in German fiscal stimulus boosting the market.

Financial experts predicted rate cuts from the ECB amidst warnings from pharma companies about tariff impacts. Defence, lending, and insurance sectors soared, with companies like ASML and AstraZeneca driving the European market upturn.

(With inputs from agencies.)