European Stocks Surge Amid Tariff Hopes, US Recession Fears Loom with 43% Probability, Deutsche Bank Survey Reveals on March 25, 2025

European stock markets are experiencing a significant rally, fueled by optimism surrounding potential easing of trade tariffs and positive economic indicators from Germany. The Euro Stoxx 50 climbed 1.4%, while the German DAX rose by 1.3%. The automotive sector is particularly strong, with BMW up 2.4% and Mercedes-Benz gaining 1.3%. However, concerns about a potential US recession are growing, with a Deutsche Bank survey indicating a 43% chance of a recession in the next 12 months. This contrasts with Federal Reserve Chair Jerome Powell's view of a strong overall economy, despite the Fed reducing its GDP growth estimate for the year to 1.7%. The survey also highlighted concerns about stagflation, as inflation remains above the Fed's 2% target, with core inflation expected to be 2.8% this year. Source: Dow Jones Newswires, CNBC, March 25, 2025.