#MarketRebound

Stocks rise, dollar rebounds after Trump backs down on comments about the Fed

The STOXX 600 of Europe rises; S&P 500 futures up 2.5%

Dollar bounces as Trump says no plans to fire Powell

Hopes for tariff relief from China, but no agreement yet

SYDNEY/LONDON, April 23 (Reuters) - European stocks recovered on Wednesday as investors found some relief from U.S. President Donald Trump saying that he had no plans to fire the head of the Federal Reserve, and hinting at lower tariffs for China.

The dollar initially jumped after Trump backed off his threats to dismiss Fed Chairman Jerome Powell, which had shaken investor confidence in U.S. assets, although most of those gains had faded by the time trading began in Europe.

Trump also reiterated that he wanted to reach a deal with China, where tariffs would not be close to 145%, and added that he would set the terms of an agreement if Beijing did not enter into talks.

The dollar rose as much as 1.1% against the Japanese yen, which has served as a major safe haven for anyone fleeing U.S. assets, before retreating to show a gain of 0.2% at 141.98, just above seven-month lows below 140.