Source: Sharecast
The pan-regional Stoxx 600 index was nearing record territory in early deals with a gain of 0.56% to 552. Germany’s DAX gained 0.23% to reach a new intra-day high of 24,640 before settling back and Britain’s FTSE 100 jumped 1.14% to also set a fresh record.
Trump announced a new 50% tariff on copper imports and a 50% duty on goods from Brazil on Wednesday to take effect on August 1. He also issued new tariff letters for seven minor trading partners, adding to 14 others issued earlier in the week.
"TACO" trades - named after the phrase "Trump always chickens out" - were driving sentiment as investors expect that the US leader would backtrack.
"The president’s latest moves are seen as posturing, and there is high expectation that there will be plenty of negotiations to head off higher duties in the weeks ahead," said Hargreaves Lansdown analyst Susannah Streeter.
"Indications that the EU is edging closer to a deal with the US, with an agreement thought to be possible in a few days, has added to the positive vibes. So, hopes are riding high that the effects on global growth won’t be as onerous as feared."
In equity news, shares in Barry Callebaut tumbled as the Swiss chocolate maker cut its volume guidance for the third time this year, citing unprecedented market conditions in the cocoa bean market.
Grafton shares were also on the slide as the building materials supplier said many of its markets remained challenging and it was not expecting a significant increase in volumes this year.
Reporting by Frank Prenesti for Sharecast.com