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Europe Stock Rally Pauses on Tariffs, Geopolitics
Wednesday, 19 February 2025 16:28 WIB | MARKET UPDATE |Eropa Stoxx600

The European stocks rally took a pause on Wednesday amid mixed earnings and after President Donald Trump's latest tariff threats stoked concern about a widening trade war.

The Stoxx 600 Index fluctuated at the open after a gain of around 10% so far this year. Glencore Plc slipped after profit fell, while HSBC Holdings Plc posted better-than-expected earnings. A tech-led advance in Asia stumbled. US equity futures were steady.

Trump brandished possible levies of around 25% on automobile, semiconductor and pharmaceutical imports, with an announcement coming as soon as April 2. The comments added to the fragile picture for markets this week as tentative hopes for an end to the war in Ukraine were tempered by the exclusion of representatives from Kyiv or Europe at talks between the US and Russia. Germans go to the polls in a national election on Sunday.

On Wednesday, traders will be focused on minutes from the Federal Reserve's most recent interest-rate meeting for clues on the potential impact of increased tariffs on inflation and interest rates. The dollar was trading little changed against Group-of-10 peers, while yields on 10-year US Treasuries were also steady.

The pound pared gains after a UK inflation report, trading little changed at $1.2616. The currency initially jumped as headline CPI came in hotter than forecast, before trimming its advance as services prices rose less than expected.

Source: Bloomberg

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