Major stock markets jumped today after three days of heavy selling as investors were optimistic that Washington might be willing to negotiate on some of its aggressive tariffs.
European shares rose from 14-month lows, after four straight sessions of heavy selling, although investors continued to closely watch developments as countries responded to sweeping US tariffs.
The CAC in Paris was up 173 points (2.5%) to close at 7,100, while the DAX in Frankfurt jumped 490 points (2.48%) to 20,280 and London's FTSE index was up 208 points (2.7%) to 7,910.
Dublin's ISEQ index was up 376 points (4%) to close at 9,684. Shares in Uniphar were up 6% to €2.67, while shares in Ryanair jumped 5.9% to €18.32. Meanwhile, shares in Malin Corporation fell 4.3% to €8.61, while shares in Origin Enterprises were down 0.33% to €3.06.
Wall Street's main indexes recouped some of the heavy losses clocked since last week as technology and financials led the gains on expectations that the US would open up for negotiations on its aggressive tariffs.
By 5.40pm Irish time, the Dow Jones was up 756 points (1.99%) to 38,722, while the S&P 500 was up 105 points (2%) to 5,167 and the Nasdaq was up 342 points (2.19%) to 15,945.
Oil prices rebounded from recent losses as well.
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"This appears to be an oversold rally" in stocks, said Adam Sarhan, chief executive of 50 Park Investments in New York.
"The question is, has anything changed? The tariffs are obviously the driver here ... Any de-escalation on the tariff front would be a welcome sign for investors."
Stocks had fallen sharply following US President Donald Trump's unveiling last Wednesday of sweeping tariffs as worries mounted that a global trade war would push the economy into recession.
Trump said on Tuesday that he is waiting to hear from China before duties of more than 100% take effect, but other administration officials said they would not prioritize negotiations with China.
Trump has already implemented a 10% tariff on almost all imports into the world's largest consumer market, and targeted tariffs of up to 50% on many trading partners are due to take effect on Wednesday.
Trump said Japan is sending a team to negotiate on trade. His decision to impose a 25% levy on auto imports, and a reciprocal 24% tariff on other Japanese goods, is expected to deal a huge blow to Japan's export-heavy economy.
