European Shares Surge Amid SAP Triumph and Eased Trade Tensions

European shares surged on Wednesday with significant boosts from SAP's strong earnings report and eased tensions between the U.S. and China, following more conciliatory remarks by President Trump. The pan-European STOXX 600 index rose notably, alongside major regional indexes such as Germany, France, and the UK.

European shares saw a notable climb on Wednesday, driven by impressive earnings from SAP, Europe's leading software manufacturer. Investors were also relieved by U.S. President Donald Trump's more conciliatory stance on the potential removal of Federal Reserve Chair Jerome Powell.

The STOXX 600 index rose by 1.8% by 0804 GMT, with regional indexes in Germany, France, Spain, and the UK advancing between 2.2% and 3%. This week's market movements were heavily influenced by concerns over the U.S. Fed's independence amidst Trump's criticisms of Powell's persistent refusal to cut interest rates since Trump's presidency began.

SAP shares experienced a significant 9.4% surge after surpassing first-quarter profit predictions, propelling the European technology sector by 3.4%. Trump also adopted a softer approach on China tariffs, suggesting improved negotiation prospects. This optimism may have averted worst-case scenarios for the markets, notably easing investor anxieties over a potential trade war.

(With inputs from agencies.)