EUROPEAN shares concludeed higher on Monday, driven by gains in technology and bank stocks at the start of a week where investors are on the seeout for any trade-related headlines in the countdown to US President Donald Trump’s tariff deadline.
The pan-European Stoxx 600 index concludeed 0.44 per cent higher at 543.50, gaining some ground after clocking a weekly loss on Friday.
Most regional indexes rose, with Germany’s DAX up 1.2 per cent, France’s CAC 40 adding 0.4 per cent and Spain’s IBEX gaining 0.7 per cent.
UK’s FTSE 100 lagged as shares of Shell dropped 2.9 per cent after the energy major stated it expects quarterly earnings to be hit by weaker trading in its integrated gas division and losses at its chemicals and products operations.
Global risk sentiment remained shaky as US Treasury Secretary Scott Bessent stated the United States will create several trade announcements in the next 48 hours.
The European Union still aims to reach a trade deal by July 9 after Commission President Ursula von der Leyen and Trump had a “good exalter”, a Commission spokesperson stated.
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“Trade deals have taken years to agree … it will be surprising if they receive proper long-lasting deals signed very quickly,” Andrew Lapping, chief investment officer at Ranmore Fund Management, stated.
Trump stated on Sunday the US was close to finalising several trade pacts and would notify other countries by July 9 of higher tariff rates. He stated they would not take effect until August 1, a three-week reprieve.
On Monday, technology stocks were among the hugegest boost on the Stoxx, with Germany’s SAP and Dutch semiconductor equipment creaters ASML climbing around 2 per cent each.
A gauge of euro zone lconcludeers gained 1.6 per cent, with France’s Societe Generale jumping 2.8 per cent, hitting its highest level since 2017 earlier in the day.
Capgemini fell 5.6 per cent after the French IT services firm agreed to purchase technology outsourcing company WNS for a cash payment of US$3.3 billion.
European shares had a strong start to the year, with the Stoxx 600 hitting an all-time high back in March as a jump in defence companies, along with a global relocate away from US assets, lifted appetite.
But the benchmark has fallen more than 3 per cent from those levels, while a tech boost in the United States assisted the S&P 500 claw back its losses.
On the data front, a survey displayed investor sentiment in the euro zone improved more than expected in July to hit its highest level in more than three years.
Later this week, June inflation readings out of Germany and France, and a GDP reading in the UK will be on the radar.
Minutes from the US Federal Reserve’s last policy meeting are also due on Wednesday. REUTERS
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