European stock markets rose in early dealmaking on Wednesday, as traders assessed the European Union’s announcement that it would impose retaliatory tariffs on U.S. imports worth up to 26 billion euros.
Sentiment was aided by a U.S. decision to resume intelligence sharing and military aid to Ukraine after Kyiv said it would support the Trump administration’s proposal for a 30-day ceasefire with Russia.
The Kremlin has yet to offer an official response. Russian Foreign Minister Sergei Lavrov said that, in the context of a peace deal, it would avoid compromises that put people’s lives in danger, according to an interview cited by Russian agencies and Reuters.
By 05:12 ET (09:12 GMT), the benchmark Stoxx 600 index had gained 4 points or 0.7%, while the DAX index in Germany had gained 308 points or 1.4%, the CAC 40 in France had risen by 75 points or 1.0%, and the FTSE 100 in the UK had climbed by 36 points or 0.4%.
The euro was also steady at $1.0923 after earlier hitting an almost five-month high against the U.S. dollar in Asian trading. Russia’s rouble also strengthened to a seven-month peak.
Elsewhere, President Donald Trump’s expanded tariffs on steel and aluminum came into effect on Wednesday, marking the latest salvo in his drive to overhaul the U.S. trading relationship with both friends and foes alike.
In a statement, the European Commission, the executive branch of the EU, said it “regrets” the U.S. decision to impose the levies, saying they would be “disruptive to transatlantic trade,” harmful to business and consumers and result in higher prices.
The Commission said it would adopt two-part countermeasures in response. The first step will see the Commission allow the suspension of previous retaliatory tariffs to lapse on April 1, a move that officials said would respond to “economic harm” done to 8 billion euros in EU steel and aluminum exports.
Brussels also vowed to place fresh tariffs on U.S. exports from next month as an answer to new American levies slapped on more than 18 billion euros in EU exports.
“The European Union must act to protect consumers and business. The countermeasures we take today are strong but proportionate,” said European Commission President Ursula von der Leyen.
Elsewhere, traders were also eyeing corporate earnings from retailer Inditex (BME: ITX). The Zara-owner reported a year-over-year jump in fourth-quarter sales but warned that it would be impacted by a slowdown in demand at the start of the year. Madrid-listed shares in the Spanish company fell by more than 6%.
In commodities, oil prices rose in European trade, recovering mildly after increased concerns over U.S. tariffs and slowing economic growth dragged prices to over three-year lows.
Investors were focusing on crucial upcoming U.S. inflation data, as well as a monthly report from the Organization of the Petroleum Exporting Countries (OPEC) for more cues on supply.
Oil has gained some ground this week, although sentiment remained largely on edge as concerns remained that tariff-related disruptions could lead to weak demand.
