European markets kicked off the week with fresh vigor on Monday, helped by the news of a major U.S.-China trade breakthrough. The White House on Sunday confirmed that the two countries had agreed to roll back most of the tariffs for 90 days—a move seen widely as a thaw in the long-standing economic tensions between the world’s two biggest economies.
The news prompted a rally in global markets, with the Stoxx Europe 600 rising 1.1% in initial trading. The major regional indexes also showed the positive mood: the U.K.’s FTSE 100 rose 0.6%, Germany’s DAX jumped 1.6%, and France’s CAC 40 increased by 1.3%.
The tariff deal entails a drastic cut in reciprocal obligations—from past highs of 125% to as low as 10%. Yet, the United States will continue to have its 20% tariff on Chinese imports tied to fentanyl, taking the overall U.S. tariffs on Chinese products to 30%. Although there are still some restrictions, market observers view this as a significant step toward more positive communication between Washington and Beijing.
U.S. Treasury Secretary Scott Bessent, who was at the negotiations in Lake Geneva, characterized the talks as “very productive” and commended the calm atmosphere for leading to a pleasant outcome. “The venue brought great equanimity to what was a very positive process,” he stated at a news conference.
Asia-Pacific markets had already reacted positively to Sunday’s announcement. U.S. stock futures surged, with Nasdaq futures indicating a 3.6% rise. S&P 500 futures were up 2.8%, and Dow futures surged almost 1,000 points, 2.3% higher. The rally should flow through the trading day in Europe and carry over to Wall Street’s open.
Among the prominent movers in European markets was Danish shipping giant Maersk, whose stock surged 13% in initial trade. Analysts credit the jump to hopes of higher global trade volumes due to the easing of U.S.-China tensions—a particularly welcome news for logistics and transport firms.
Elsewhere in the region, Italy’s UniCredit posted a strong earnings report, further supporting market sentiment. The bank recorded a first-quarter net profit of €2.77 billion ($3.11 billion), surpassing analyst expectations of €2.34 billion, LSEG data showed. This is the 12th straight earnings beat for UniCredit and led it to raise its full-year profit target to €9.3 billion. If delivered, this would yield a return on tangible equity of more than 17%, from previous guidance that had estimated results generally in line with last year.
On the cryptocurrency front, Bitcoin recorded a small correction of 0.42% to $103,859.94 but held firmly above the psychologically important level of $100,000. The small dip follows a month of steep appreciation, including a rally in late January that put Bitcoin above the six-figure point for the first time. Pundits continue to be mixed on whether or not the digital currency will maintain its perch or encounter more aggressive resistance in coming weeks.
Although Monday is likely to be fairly subdued as far as new information or significant corporate news is concerned, the upbeat sentiment in equity markets indicates increasing investor confidence. The pause in U.S.-China tariffs, along with robust earnings from Europe and ongoing cryptocurrency resilience, provides a reassuring backdrop for the week ahead.
As markets absorb these developments, the focus will now shift to whether the ad hoc truce between the U.S. and China can transition into a longer-term framework of trade cooperation. For the time being, investors appear happy to surf the tide of optimism.
