As investors weigh Donald Trump's tariff plan, European stock markets experienced their largest increase in over a month, boosted by the Technology, Autos, and Luxury Goods Sectors.
The Stoxx 600 Index closed up 1% in London, with significant gains in the Autos and Luxury Goods Sectors, following a report from The Washington Post that Trump's aides are considering implementing a tariff action weaker than expected. However, Trump quickly refuted the news on Truth Social.
"Caution must be observed; Trump may make different statements at any time," said Andrea Tueni, the head of sales trading at Saxo Banque France, after the report was released by The Washington Post.
"His advisers' positions may be much more moderate than his, which could result in volatility like this," he stated.
Technology shares rose by about 3.9%, marking the largest gain in nearly a year, with chip-related stocks, such as Infineon Technologies, ASML Holding, ASM International NV, and BE Semiconductor receiving an additional boost due to Microsoft's plan to spend $80 billion on building AI Datacenters. Additionally, luxury giant LVMH soared by as much as 5.3% during the session.
The UK FTSE100 Index lagged behind. Food and beverage company Unilever fell after being downgraded by Jefferies Capital Markets, and Rolls-Royce Holdings lost the Buy rating from Citigroup, which it had enjoyed since 2016.