European Stocks Rebound on Germany Spending Plans, Tariff Hopes
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European stocks gained after Germany announced hundreds of billions of euros in defense and infrastructure investment, with additional boosts coming from China’s ambitious growth targets and signals that the Trump administration may walk back some trade tariff measures.
Germany’s DAX Index led Wednesday’s gains, trading 3.4% higher at the close in Frankfurt, after the chancellor in waiting, Friedrich Merz, unveiled the huge fiscal plan. The Stoxx Europe 600 Index gained 0.91%, while the construction and materials subindex hit a fresh record high. A UBS basket tracking German Fiscal Reform-sensitive stocks soared 9.6% to an all-time.