Danish Stock Market Roars Back After Trump's Tariff Pause
A Tumultuous Economy receives a Shot of Relief
Stocks in Denmark projected for record-breaking day following Trump's halt on tariffs
The Danish stock market experienced an extraordinary spike on Thursday, following US President Donald Trump's decisive move to partially defer his tariff plans.
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Denmark's C25 index witnessed a jaw-dropping 13% surge soon after the market opened. Although the prices have since dropped a few percentage points, the index is still gunning for its best trading day in history.
The existing record for a daily closing gain was set in March 2020, mere days after Denmark's Covid-19 lockdown, with a modest 4.1% increase.
The C25 index is compiled from the 25 most actively traded stocks at the Copenhagen Stock Exchange, with heavyweights weighing in heavier.
Trump's tariff announcements—coupled with the escalating US-China trade war—had sparked widespread panic over a potential recession over the past week, leaving both Danish and international markets reeling.
European markets took a nosedive on Wednesday, plummeting around 3% once Trump's punishing tariffs went into effect, prompting China to retaliate with gigantic duties against US levies[1].
But Trump did an about-face after European markets closed, suspending the higher tariffs for all nations save China.
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While Trump left a 10% baseline tariff in place, his trade war with China intensified, raising tariffs against Chinese goods to a staggering 125%[2].
This remarkable rebound from Danish investors wasn't a huge shock, according to Tine Choi Danielsen, PFA Pension's chief strategist.
"Given the rollercoaster we’ve recently been on, it’s not unexpected to witness this kind of rebound brought on by hope and relief," Danielsen explained to news wire Ritzau[2].
Every company within the C25 index seemed to be recovering from their recent losses on Thursday. Notable Danish firms like Maersk, Novo Nordisk, DSV, and Pandora have all posted substantial gains at the time of writing.
"For the transport sector, this is about the anticipation that global trade won't go belly-up in the following 90 days," Danielsen remarked in reference to the duration of Trump's tariff delay[2].
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### The Long-term Stay of Foreign Nationals in Denmark### The Firing of the US Base Head in Greenland for Speaking Out Against Vance's Visit**### The Impact of Trump's Tariffs on Denmark
- The surprising rebound of the Danish stock market was witnessed recently, following US President Donald Trump's decision to temporarily defer his tariff plans, providing a shot of relief to the tumultuous economy.
- The C25 index, compiled from the 25 most actively traded stocks at the Copenhagen Stock Exchange, experienced a jaw-dropping 13% surge on Thursday, with substantial gains posted by notable Danish firms like Maersk, Novo Nordisk, DSV, and Pandora.
- The economy received a shot of relief not only from the Danish market but also from the art industry, as the suspension of higher tariffs offered a glimmer of hope that the global economy might avoid an unexpected recession.
- In the finance sector, the news inspired confidence, causing even the space industry to show signs of improvement, as investors seemed to be optimistic about the 90-day tariff delay.
- This surprising development in the business world was not a huge shock, according to Tine Choi Danielsen, PFA Pension's chief strategist, who explained that it was only natural to witness such rebound brought on by hope and relief during such turbulent times.
- Despite leaving a 10% baseline tariff in place and further intensifying the trade war with China, the partially deferred tariffs resulted in a surprising drop in the prices of stocks in the economy, offering a potentially hopeful scenario for the finance and industry sectors moving forward.
