SXXP: Stoxx 600 Snaps Back as Euro Stocks Surge 2.7% After Brutal 4-Day Selloff

European bourses were free from anxiety on Tuesday but kicked off Wednesday’s session in the red.

💪 European Shares Rebound

• The Europe-wide Stoxx 600 index SXXP opened Wednesday’s session to the downside as traders were still unsure how to go about tariffs. The index bounced off 14-month lows on Tuesday, snapping a brutal four-day losing streak that bit a 12% chunk off the benchmark’s value.
• The rebound came as investors treaded carefully, keeping a close eye on global fallout from sweeping US tariffs and the response coming from China. And that’s what toppled European bourses today.

📢 China and the 104% Tariff

• Starting today, China should be paying a total of 104% tariffs on its goods making their way to the US. It’s the highest tariff rate in more than 100 years and it casts a huge shadow over economic growth and stability.
• “Countries like China, who have chosen to retaliate and try to double down on their mistreatment of American workers, are making a mistake,” White House Press Secretary Karoline Leavitt told reporters on Tuesday. “President Trump has a spine of steel, and he will not break.”

🌀 US Markets Continue Spiraling

• In the US, the equity market tried to break its cycle of painful sessions and briefly rallied on Tuesday. But that relief rally wasn’t anything to count on and stocks pared back the gains, ending the day in red.
• Futures markets in the US were not inspiring any confidence in the day ahead. Before the opening bell, S&P 500 futures were down 2.3%, Nasdaq futures were showing a 2.5% loss, and Dow futures were lower by 2%.