European markets opened higher on Wednesday, as global market sentiment rebounds amid receding concerns over a trade war between the U.S. and China.
The regional Stoxx 600 index was 1.4% higher shortly after the opening bell, with most sectors trading in positive territory.
Global markets rallied Tuesday on hopes of an eventual breakthrough in the trade standoff between the U.S. and China, sending U.S. stocks sharply higher. Trump indicated that final tariffs on Chinese exports to the U.S. “won’t be anywhere near as high as 145%.” However, he added that the duties “won’t be 0%.”
Back in Europe, German software giant SAP posted a 58% year-on-year operating profit jump in constant currency for the first quarter of 2025, with revenue rising 11%. The company’s results came in above expectations.
Frankfurt-listed shares of SAP were 8.2% higher by 8:21 a.m. in London.
Investors in Europe will also be keeping an eye on earnings from NatWest and Heathrow Airport on Wednesday.
U.S. stock futures popped and Asia-Pacific markets also got a boost overnight after the president said he has “no intention” of firing U.S. Federal Reserve Chair Jerome Powell before his term ends next year.
Trump has repeatedly criticized Powell and demanded that interest rates be cut, raising fears that he would seek to remove him from his post at the central bank, which has traditionally operated with independence from government.
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