Europe midday: Stoxx rallies, touches highs amid more tariff turmoil
European shares climbed out of the red and back into positive territory by lunchtime on Friday - having hit another intra-day high at the open - as the latest bout of Trump tariff turmoil hit markets.
The pan-regional Stoxx 600 was up 0.08% at 554.16, having reached 554.48.
After a heavy week of economic and corporate data, traders will be looking at final eurozone GDP figures for the fourth quarter of 2024 and US retail sales numbers.
US President Donald Trump on Thursday said he would impose new import duties in retaliation for those levied by other countries, taking aim at the European Union’s 20% VAT rate, saying it was the same as a tariff, but set a deadline for the end of April for talks to take place.
"Although President Trump’s pledge to impose reciprocal tariffs on trade partners has set off a fresh round of uncertainty, the more gradual approach has been tentatively welcomed. With a fresh deadline set for April, he’s essentially triggered fresh rounds of talks, and haggling is set to ensue with leaders," said Hargreaves Lansdown analyst Susannah Streeter.
In economic news, the eurozone economy grew 0.1% in Q424, according to Eurostat, ahead of preliminary estimates for a flat reading.
The bloc's gross domestic product increased at an annual rate of 0.9% in Q4, in line with initial estimates of 0.9%, even as the EU's two largest economies contracted, with German GDP contracting by 0.2% and French GDP decreasing by 0.1%, while Italy stagnated for a second straight quarter. Year-on-year, Euro Area GDP grew by 0.9%.
In equity news, shares in posh fashion brand Hermes jumped as it reported a better-than-expected rise in fourth-quarter sales. The news lifted shares in brands favoured by the wealthy such as Richemont, Burberry, LVMH and Christian Dior.
Tomra Systems topped the Stoxx after the Norwegian recycling specialist posted strong fourth-quarter results.
Reporting by Frank Prenesti for Sharecast.com