European stocks rise as investors assess trade landscape

The DAX index in Germany climbed 0.1%, the CAC 40 in France gained 0.2% and the FTSE 100 in the U.K. rose 0.2%

European stocks edged higher Monday, starting the new week on a positive note as investors continued to assess the evolving trade landscape.

At 07:05 GMT, the DAX index in Germany climbed 0.1%, the CAC 40 in France gained 0.2% and the FTSE 100 in the U.K. rose 0.2%.

The main European benchmarks posted healthy gains last week, following Wall Street higher, as investors welcomed solid second-quarter earnings in the wake of a trade agreement between the European Union and the U.S., ending the chance of a costly trade war.

However, the news was less positive in other regions, as the Trump administration’s tariffs took effect from Thursday, imposing import duties as high as 50% on regional economies.

Additionally, the U.S.-China tariff truce, which has kept escalating duties in check, is due to expire on August 12.

While markets are hopeful it will be extended, uncertainty persists over the outcome, especially as a trade conflict between the two largest economies in the world would likely have global repercussions.

U.S. President Donald Trump on Monday said he hopes China will “quickly quadruple” its soybean orders from American farmers, framing the move as a way to cut Beijing’s trade deficit with Washington.

Quarterly corporate earnings are relatively thin on the ground Monday as the market heads into the dog days of summer.

We believe we are approaching the time to look for the next leg higher in the eurozone, said analysts at JPMorgan, in a note.

In the interim, the market needs to work through the stagflationary risks stemming from the U.S., and also the more mixed European earnings delivery, they said.

Oil prices fell Monday, continuing last week’s substantial losses ahead of scheduled talks between the U.S. and Russia later this week on the war in Ukraine.

At 03:05 ET, Brent futures slipped 1% to $65.93 a barrel, and U.S. West Texas Intermediate crude futures fell 1.1% to $63.16 a barrel.

Both benchmarks fell by more than 4% last week as traders digested the news that Trump will meet Russian President Vladimir Putin on August 15 in Alaska to negotiate an end to the war in Ukraine.