Investors cautiously turn to Europe as US credibility falters under Trump's tariffs

Rising Treasury yields and falling US indices

European equities have seen a resurgence in confidence on the back of Germany's fiscal ambitions and with US President Donald Trump’s tariffs crushing confidence in his market's assets, but some investors warn tariffs will "weigh" on Europe's growth.

On 2 April, after years of blaming other trading partners for the US' economic woes, Trump unleased a series of levies on dozens of countries, prompting a tit-for-tat response from one of its largest trading partners, China. Trump's 'erratic' policies push $22bn out of US equities in 21 days This caused markets to tumble and recover from the fall several times, only to see a moment of respite as Trump pulled a break on most levies except for Beijing last week. But US assets remain exposed to further vulnerability, which has so far been reflected in rising Treasury yields and declin...