Gains after a court blocked President Trump's emergency tariffs got less strong, however, as trading progressed.

EUROPE’S main stock index closed lower amid broader declines on Wednesday as investors monitored progress in trade negotiations with the United States and assessed a slate of economic data from the region.

Global stocks and the dollar largely firmed Thursday after a US court blocked most of President Donald Trump's sweeping tariffs from taking effect.

In Europe, the Stoxx Europe 600 gained 0.4% in morning trading. Elekta Series B added 5.9% and BE Semicon Industries rose 4.5%. On the other hand, Auto Trader Group dropped 9.4%, and Rheinmetall slipped 4.3%. The FTSE 100 was flat. Other stocks in Europe were up as France's CAC 40 gained 1% and Germany's DAX climbed 0.4%.

The year 2025 has marked a remarkable shift in investment sentiment, with Europe experiencing one of its strongest starts against the US in over half a century.

EUROPEAN shares kicked off the week on a positive note on Monday, recouping the previous session’s losses, as markets heaved a sigh of relief after US President Donald Trump delayed his threat to impose a 50% tariff on the region.

Mark Phillips, European equity strategist at Ned Davis Research, said the firm has taken its rating of European stocks up to neutral from underweight after key technical indicators have turned "conclusively bullish.

U.S. stocks fell after President Donald Trump threatened 50% tariffs on the European Union that could begin in a little more than a week.

The tongue-in-cheek term adopted by some analysts and commentators describes how markets tumble on President Trump’s tariff threats, only to rebound when he relents.

President Trump rejected claims he backed down on tariff threats, saying, “You call that chickening out? It’s called negotiation,” and credited his actions with improving trade talks with the European Union.