European stocks rise over 2% after US tech tariff exemptions

European stock markets rose sharply Monday after the United States announced exemptions from sweeping tariffs for smartphones, laptops, semiconductors and other electronic products, tempering trade war fears.

Despite US President Donald Trump suggesting that the exemptions could be short-lived, European stocks rallied around two percent at the start of the week, tracking gains in Asia and on Wall Street.

Frankfurt jumped 2.3 percent in early deals, Paris gained 2.2 percent and London advanced 1.9 percent.

On Friday, the US had appeared to slightly dial down the pressure on its trade war with Beijing, listing tariff exemptions for electronic products for which China is a major source.

The announcement provided an injection of optimism for investors in wake of rollercoaster week for equities as the world’s two largest economies exchanged tit-for-tat levies.

US levies imposed on China have risen to 145 percent, and Beijing set a retaliatory 125 percent band on US imports.

However, Trump and some top aides said Sunday that the exemptions had been misconstrued and would only be temporary as his team pursued fresh tariffs against many items on the list.

“Just when it seemed the tariff chaos couldn’t get any worse, tech investors have spent the weekend scrambling to make sense of a whirlwind of confusing — and at times contradictory — messages coming out of the White House,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.

“Despite the messy rollout, what’s caught investors’ attention is the news that these products won’t be hit with the harsh China-specific tariffs,” he added.

AFP

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