European stock markets have kicked off the new trading week on a positive note, following the White House’s announcement that the U.S. and China have reached an agreement to reduce tariffs.
The Stoxx Europe 600 rose 1.1% in early trading on Monday. The U.K.’s FTSE 100 opened about 0.6% higher, Germany’s DAX gained 1.6%, and France’s CAC 40 climbed 1.3%.
It’s a quiet day for corporate and data releases, though Unicredit published its latest earnings report on Monday.
U.S. and China Suspend Most Tariffs
U.S. Treasury Secretary Scott Bessent stated that talks with China had been “very productive” on Monday. The agreement to suspend most tariffs for 90 days marks a significant thaw in trade tensions between the two largest economies in the world.
The trade deal includes a reduction of reciprocal tariffs between the U.S. and China from 125% to 10%. However, the U.S.’s 20% duties on Chinese imports related to fentanyl will remain in place, leaving the total tariff on China at 30%.
“We had very productive talks, and I believe that the venue here in Lake Geneva added great balance to what was a very positive process,” said Bessent in a news conference.
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Read moreThe announcement has driven positive momentum across global markets, with U.S. stock futures surging on Sunday night. Nasdaq futures pointed to a 3.6% gain, while S&P 500 futures climbed 2.8%, and the Dow surged by nearly 1,000 points, or 2.3%.
UniCredit Beats Earnings Expectations
UniCredit has exceeded profit estimates for the 12th consecutive quarter. The Italian bank reported a net profit of 2.77 billion euros ($3.11 billion) for the first quarter of 2025, surpassing the median analyst forecast of 2.34 billion euros.
UniCredit also raised its full-year net profit guidance to 9.3 billion euros, expecting its return on tangible equity (RoTE) to exceed 17%. Previously, the bank had anticipated that net profit and RoTE would be “broadly in line” with the previous year.
Bitcoin Price Drops but Stays Above $100,000
Bitcoin experienced a slight decline on Monday but remained above the $100,000 mark. As of 11:39 a.m. Singapore time, Bitcoin was trading down 0.42% at $103,859.94. This price drop follows a surge in the previous week, which prompted some investors to predict that the cryptocurrency could soon hit new highs.
Spot Gold Drops Amid Positive Trade News
Spot gold prices took a hit on Monday, falling 1.85% to $3,262.29 per ounce as investors reacted positively to progress in U.S.-China trade talks. The precious metal, traditionally seen as a safe-haven investment during times of political or financial uncertainty, had gained 2.6% the previous week, but Monday’s news reversed some of those gains.
European Markets Open Strong
European markets are expected to start the week with a positive outlook. The U.K.’s FTSE 100 index is forecast to open 35 points higher at 8,586, Germany’s DAX is expected to rise 192 points to 23,688, France’s CAC 40 is projected to increase by 70 points to 7,785, and Italy’s FTSE MIB is set to climb 366 points to 39,139, according to IG data.
Unicredit’s earnings report will be a highlight on Monday for the European market.
