In early trading, Germany’s DAX initially gained more than 8%. By midmorning, they were up 5.3% at 20,720.86, while France's CAC 40 in Paris gained 5% to 7,204.23. Britain's FTSE 100 surged 4.0% to 7,983.37.
Chinese shares saw more moderate gains, given yet another jump in the tariffs each side is imposing on each others’ exports.
The future for the S&P 500 was down 2.1% while the contract for the Dow Jones Industrial Average dropped 1.6%.
Analysts had expected the global comeback given that U.S. stocks had one of their best days in history on Wednesday as investors registered their relief over Trump’s decision.
Investors went “from fear to euphoria,” Stephen Innes, managing partner at SPI Asset Management, said in a commentary.
“It’s now a manageable risk, especially as global recession tail bets get unwound, and most of Asia’s exporters breathe a massive sigh of relief,” he said, referring to the tariffs on China, which Trump has kept.
On Wednesday, the S&P 500 surged 9.5%, an amount that would count as a good year for the market and its third-best day since 1940.
The Dow Jones Industrial Average shot to a gain of 2,962 points, or 7.9%. The Nasdaq composite leaped 12.2%.
