European markets opened the brand new week with strong features, buoyed by renewed investor optimism after US President Donald Trump introduced that main tech merchandise similar to semiconductors and smartphones could be briefly exempt from the upper tariffs on Chinese language imports.
Nonetheless, the US administration clarified that these things stay topic to the prevailing 20% fentanyl-related tariffs, and a particular tariff on semiconductors and electronics will probably be launched in round a month.
Chinese language authorities welcomed the choice, calling the US tariff exemption a small however constructive step towards correcting earlier wrongdoings.
By 8:15am CEST, the Euro STOXX 50 index – which tracks blue-chip firms throughout the eurozone – had risen 1.5%, whereas the broader Euro STOXX 600 was up 1.6%. Germany’s DAX 50 led regional efficiency with a 2.2% achieve, adopted by France’s CAC 40, which climbed 1.8%. Italy’s FTSE MIB and Spain’s IBEX 35 posted extra modest will increase of 1.2% and 1.0%, respectively.
Traders are additionally awaiting first-quarter income figures from French luxurious conglomerate LVMH, which may present perception into shopper behaviour and the resilience of demand within the high-end sector.
In macroeconomic developments, Chinese language exports rose sharply by 12.4% year-on-year in March 2025, reaching USD 313.9 billion (€275.8bn). This determine considerably exceeded market expectations of a 4.4% enhance and represented a steep acceleration from the two.3% progress recorded within the January to February interval. It marked the quickest growth in abroad gross sales since final October, indicating a probable frontloading of shipments forward of the anticipated implementation of recent US tariffs.
High gainers in European markets on Monday
Among the many high performers within the Euro STOXX 50 index have been main European banks. Deutsche Financial institution gained 4.2%, BNP Paribas superior by 4.1%, and Société Générale rose 3.5%. Dutch semiconductor big ASML Holding additionally posted a powerful efficiency, climbing 2.8%.
Vitality shares have been buoyed by a rebound in oil costs. Repsol elevated by 3.2%, whereas Eni added 2.5%. In Germany’s DAX index, alongside Deutsche Financial institution, Sartorius rose by 3.6%, Puma added 3%, and Fresenius Medical Care additionally gained 3%.
Within the French market, STMicroelectronics surged by 6.5%, reflecting robust investor confidence. In Italy, Tenaris and Saipem each climbed 4%.
Euro hits 1.14 as greenback weak point persists
The euro rallied to 1.14 towards the dollar, retesting Friday’s highs and aligning with its strongest ranges since February 2022. The transfer was pushed by ongoing greenback weak point within the overseas trade market.
Chris Turner, analyst at ING, famous that “the greenback continues to commerce on a weak footing”, and raised the likelihood that forex coverage might characteristic in upcoming commerce negotiations led by Scott Bessent with Japan and China.
Luca Cigognini, Market Strategist at Intesa Sanpaolo, commented {that a} break above 1.14 would open the door for a transfer towards 1.1500, the extent final seen in early 2022. He additionally added that the commerce conflict initiated by President Trump is favouring defensive currencies and undermining the “greenback’s conventional position as a secure haven”.
The European Central Financial institution is scheduled to fulfill on Thursday to resolve on rates of interest. Market members stay divided over whether or not Frankfurt will choose to carry charges regular or implement a minimize.
In the meantime, eurozone bond yields declined. German two-year yields fell by 5 foundation factors to 1.78%, whereas the 10-year Bund yield dropped three foundation factors to 2.55%.
Gold futures edged 0.2% decrease after the dear metallic had reached report highs towards the greenback final Friday, briefly surpassing $3,200 (€2,830) per ounce.
