European stocks rose modestly on Monday, beginning the week on a positive note as investors continued to evaluate shifting trade conditions.
At the time of writing, Germany’s DAX index was up 0.1%, France’s CAC 40 gained 0.2%, and the UK’s FTSE 100 also rose 0.2%.
The uptick followed healthy gains last week, when major European benchmarks tracked Wall Street higher on the back of strong second-quarter earnings and relief from a newly reached trade agreement between the European Union and the United States, which reduced the risk of a costly trade war.
Earnings announcements were limited as the market moved deeper into the summer lull.
UK building supplier Marshalls reported a decline in first-half profit compared to last year, citing weaker margins in its Landscaping Products division, which outweighed gains in Roofing and Building Products.
Separately, Danish wind farm developer Orsted announced plans for a $9.4 billion rights issue, pointing to adverse developments in the US offshore wind sector.
Analysts at JPMorgan said in a note that they see the eurozone nearing “the time to look for the next leg higher,” but added that markets must first contend with stagflationary pressures from the US and a mixed European earnings season.
US-China tariff truce nears deadline
While European markets showed resilience, broader global trade tensions remained a concern.
The Trump administration’s new tariffs took effect last Thursday, imposing import duties of up to 50% on certain regional economies.
Attention is now turning to the US-China tariff truce, which is set to expire on August 12.
Although markets remain hopeful for an extension, uncertainty persists over the negotiations’ outcome.
Analysts warn that a breakdown in talks between the world’s two largest economies could have far-reaching global effects.
On Monday, US President Donald Trump said he hoped China would “quickly quadruple” soybean purchases from US farmers, presenting the move as a step toward narrowing Beijing’s trade surplus with Washington.
Mixed performance in Asian markets
Asian equity markets were mixed on Monday.
Sentiment was supported by expectations that the US Federal Reserve could cut interest rates in September after weaker economic data last week.
Gains, however, were tempered by concerns over the potential fallout from President Trump’s “reciprocal tariffs” targeting more than 90 trading partner nations.
Hong Kong’s Hang Seng Index fell 0.1% to 24,808.64 as of 10:10 a.m. local time, while the Hang Seng Tech Index dropped 0.5%. China’s CSI 300 Index rose 0.2% and the Shanghai Composite Index added 0.1%.
In South Korea, the benchmark KOSPI inched up 0.07% to 3,212.21, with investors awaiting US inflation data and clarity on domestic tax reforms.
In Australia, the S&P/ASX 200 gained 0.35% to 8,838.10, reversing two days of losses, aided by strength in iron ore miners, energy, and financial shares
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