Global Stock Markets Recovering After Sharp Losses

Forex News

US President Donald Trump faced growing pressure from political and diplomatic allies to pull back from proposed steel and aluminum tariffs, helping soothe investor nerves about an imminent trade war. Global stocks pushed higher, as investors piled back into equity markets amid receding fears about a trade war stemming from US President Donald Trump's proposed tariffs on imported steel and aluminum.

Nearly all the European major indices traded in positive territory, with the pan-European Stoxx 600 index, the region's broadest measure of share prices, rising around 0.8%, with all sectors in the green. The DAX and CAC have both posted strong gains. The DAX is up 1.15%, while the CAC has gained 0.81%. But still, the German DAX is almost 10% below its January highs amid long coalition talks. Italy's benchmark FTSE MIB index was up more than 1%, recouping all of its losses from the previous session, as concerns over political uncertainty following an inconclusive election result eased.

The EU intends to impose a duty of 25% on a number of consumer, agricultural and steel goods imported from the United States, in response to US actions. The European Commission should discuss proposals for a response at a meeting on Wednesday. The Commission is also considering the filing of a complaint against the United States in the World Trade Organization (WTO). Last week, Donald Trump said that the US will impose a duty of 25% on steel imports and 10% on aluminum imports for a long period of time.