SXXP: STOXX 600 Pops 1% in Relief Rally After Trump Extends Tariff Deadline to July 9
1 min read
Key points:
- Tariff deadline pushed from June 1 to July 9
- STOXX 600 gains 1% in good old relief rally
- Autos, luxury lead rebound across sectors
Friday’s news: tariffs are back and the EU will be slapped with 50% on June 1! Monday’s news: Actually, wait, make that July 9.
📈 European Bourses Take Off
- European stocks breathed a sigh of relief Monday as the STOXX 600 index
SXXP was trading higher by 1% following a weekend twist in the US-EU trade saga. - After rattling markets Friday with a plan to impose sweeping 50% tariffs on European imports starting June 1, President Trump hit pause — pushing the deadline back to July 9. The announcement led to a broad stock pullback on both sides of the Atlantic.
- But with the five extra weeks of calm — or at least a temporary reprieve — traders are back at it again, taking full advantage, piling into everything from luxury goods to autos in a good old relief rally.
🌊 Markets Sway to Trump’s Rhythm
- This marks yet another chapter in the ongoing tariff drama that’s kept global investors on edge. Trump’s original Friday announcement is no longer the news — just a weekend later.
- Monday’s reversal offered traders just enough breathing room to re-enter risk. Whether it’s wine, cheese, or BMWs, the tariff threat isn’t off the table — it’s slightly delayed.
- Still, in a world where algorithmic traders react to every Trump post and press release, five weeks of ambiguity beats an imminent 50% tax wall.
🚗 Sector Winners and What’s Next
- Luxury stocks and industrials led the charge higher, with automakers especially benefiting from the delay. The euro also firmed against the dollar, with the
EURUSD pumping to a one-month high of $1.1418. - But no one’s fully exhaling yet. Investors are bracing for more headlines and more potential reversals in tone. Trump has a history of turning the dial up — or down — without much notice.
- Looking ahead into the week, US stocks are closed on Monday, the Federal Reserve’s meeting minutes are coming Wednesday. The summary is followed by the US GDP on Thursday and the Fed’s preferred inflation gauge, PCE, on Friday.