Source: Sharecast
The pan-regional Stoxx 600 index just below its record highs with a gain of 0.54% to 552.93 Germany’s DAX slipped 0.38% to 24,456.81, but hit a fresh intra-day high of 24,640 before settling back, and Britain’s FTSE 100 jumped 1.23% to also set a fresh record.
Worth noting nonetheless, JP Morgan chief Jamie Dimon told a gathering in Ireland that financial markets were underestimating the odds of higher interest rates.
Dimon put the possibility of at 40-50%, versus the 20% being discounted by markets.
"TACO" trades - named after the phrase "Trump always chickens out" - were driving sentiment as investors expected that the US leader would eventually backtrack.
Overnight, Trump had announced a new 50% tariff on copper imports and a 50% duty on goods from Brazil on Wednesday to take effect on 1 August. He also issued new tariff letters for seven minor trading partners, adding to 14 others issued earlier in the week.
"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 13% 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 slid as the building materials supplier said many of its markets remained challenging and it was not expecting a significant increase in volumes this year.