European stock markets have started the new trading week on a positive note following the White House’s announcement that the U.S. and China had agreed to slash tariffs.
The Stoxx Europe 600 rose by 1.1% in early trade on Monday. The U.K.’s FTSE 100 opened around 0.6% higher, Germany’s DAX was up 1.6%, and France’s CAC 40 moved up 1.3%.
It’s a quiet day for corporate and data releases, although Unicredit released its latest earnings on Monday.
U.S. Treasury Secretary Scott Bessent said on Monday that talks with China had been “very productive.”
The agreement to suspend most tariffs for 90 days shows a thawing of trade tensions between the world’s two largest economies.
U.S. stock futures jumped Sunday night and Asia-Pacific markets rose as a result of comments from the White House on Sunday that a “trade deal” with China had been reached.
Nasdaq futures pointed to a 3.6% gain, with the S&P 500 futures higher by 2.8% and Dow up by nearly 1,000 points, or 2.3%.
— CNBC’s Amala Balakrishner contributed reporting to this market summary
U.S. and China suspend most tariffs in dramatic thawing of tensions
The U.S. and China on Monday agreed to suspend most tariffs on each other’s goods in a move that shows a major thawing of trade tensions between the world’s two largest economies.
The trade agreement means that “reciprocal” tariffs between both countries will be cut from 125% to 10%. The U.S.’ 20% duties on Chinese imports relating to fentanyl will remain in place, meaning total tariffs on China stand at 30%.
“We had very productive talks and I believe that the venue, here in Lake Geneva, added great equanimity to what was a very positive process,” U.S. Treasury Secretary Scott Bessent said in a news conference.
— Sam Meredith
UniCredit beats estimates for the 12th consecutive quarter
UniCredit beat profit expectations in the first quarter of 2025, marking the 12th consecutive time the bank has topped estimates.
The Italian lender reported net profit of 2.77 billion euros ($3.11 billion), against the median analyst forecast of 2.34 billion euros, according to LSEG data.
The bank also raised its full-year net profit guidance to 9.3 billion euros, which could take its return on tangible equity to more than 17%. UniCredit had previously expected net profit and RoTE to be “broadly in line” with the previous financial year.
— Ganesh Rao
Bitcoin falls, but remains above $100,000 threshold
Bitcoin slid on Monday, but continued to hold steady above the $100,000 threshold.
The cryptocurrency was down 0.42% to $103,859.94 as of 11.39 a.m. Singapore time.
The latest move is a reversal from its fast gains in the last week, which pushed investors to forecast that it will soon hit its which happened at the end of January.
Bitcoin prices
— Amala Balakrishner
Spot gold sinks as investors cheer progress in U.S.-China trade talks
Spot gold plunged Monday as investors cheered early signs of progress in trade talks between the U.S. and China.
As at 9.20 a.m. Singapore time, the bullion was trading 1.85% lower at $3,262.29 per ounce.
Spot gold
The latest moves in the precious metal — which is a traditional hedge against political and financial instability — is a reversal from the 2.6% gain it notched the week before as investors sought refuge in it.
— Amala Balakrishner
European markets: Here are the opening calls
European markets are expected to start the new trading week on a positive note.
The U.K.’s FTSE 100 index is expected to open 35 points higher at 8,586, Germany’s DAX up 192 points at 23,688, France’s CAC 70 points higher at 7,785 and Italy’s FTSE MIB 366 points higher at 39,139, according to data from IG.
Earnings come from Unicredit on Monday.
— Holly Ellyatt
