'Tariff Avoiders' Among Surprise Bright Spots Dappling Europe Markets

Shares of surprise tariff avoiders like pharmaceuticals and drinks firms and rate-sensitive stocks such as real estate were among the few to post gains in Europe on Thursday, as fears of a global recession sent wider markets tumbling.

The broad STOXX 600 dropped to its lowest in two months and was last down 1.2%, but U.S. index futures fell more, around 3%, as President Donald Trump’s drastic trade tariffs sent investors out of stocks into the safety of bonds and gold. [MKTS/GLOB]

The euro itself roared higher, heading for its biggest one-day rise in almost a decade, up over 2.5% at one point at $1.1147, as investors dumped dollars.

Among the gloom in the stocks world, surprise bright spots appeared, particularly in those sectors where investors had been bracing for high tariffs, but did not see their worst fears materialise.

European spirit makers were expected to see large tariffs after a social media post from Trump last month suggesting as much. After they avoided any particularly special harsh treatment, however, shares rose on Wednesday.

Diageo and Davide Campari were up over 2%, rebounding after recent tumbles.

"The scale of tariffs for spirits stocks is less than feared," Citi analysts said, adding that markets had anticipated around 25% tariffs on the sector.