European stocks rebound after turbulent trading week

European stock markets recovered on Monday, April 15, 2025, after a session of significant market fluctuations the previous week. UK and European stocks, buoyed by a sense of calm among investors, demonstrated strong gains. The recovery followed a heavy sell-off triggered by Donald Trump's recent tariff announcement, leading to a technical bear market where stocks dropped more than 20% from recent peaks. Trading trends improved notably after a positive turn on Thursday, which sparked a renewed sense of optimism in the markets. Germany's Dax index surged by 2.85%, while France's Cac 40 increased by 2.37%. London’s FTSE 100, which ended at 8,134.34, rose 170.16 points, marking a recovery from previous losses. The S&P 500 and Dow Jones also reflected improvements, with minor upticks of around 0.2% when European markets closed. Tom Stevenson from Fidelity International noted that the recovery was aided by a postponement in tariffs announced earlier in the month, and investors seemed to regain composure. The British pound showed strength against major currencies, increasing by approximately 0.75% against the US dollar and 0.4% against the euro. In corporate news, the John Wood Group received a takeover bid from Dubai-based Sidara valued at £242 million, significantly less than the previous proposal of £1.56 billion. Shares for Wood Group rose by 4.4% despite the reduced bid. Meanwhile, Ashmore’s stocks fell by 6.4% following a report indicating that its total assets under management declined by 5% over the latest quarter, reflecting ongoing market volatility despite emerging markets showing signs of resilience. Overall, the immediate recovery of the European stock markets illustrated a shift in investor sentiment and highlighted the complexities of navigating fluctuating trade policies amidst a broader economic context affected by U.S. policies. As investors began to adjust to the evolving trade landscape, the significant rebound reflected a collective hope for stability and recovery in the markets, albeit conditioned by the ongoing global economic dynamics.