European Markets Soar on U.S.-China Tariff Deal
European shares surged as the U.S. and China agreed to reduce tariffs, suggesting a slowdown in the trade conflict. The pan-European STOXX 600 index rose 0.9%, with major gains in Germany, France, Spain, and the UK. Healthcare and defense stocks saw declines, while banks and logistics companies experienced notable rises.
In an encouraging development for investors, European markets rose sharply on Monday following an agreement between the United States and China to scale back reciprocal tariffs. The pact has eased fears of an impending trade war, bolstering European shares.
U.S. Treasury Secretary Scott Bessent announced a 90-day ceasefire in tariff measures, with reductions exceeding 100 percentage points. The pan-European STOXX 600 index climbed 0.9%, buoyed by significant increases in regional indexes, including Germany's new record high.
While sectors like sportswear and logistics reaped the benefits, healthcare and defense stocks suffered declines. Healthcare companies faced pressures after a proposal by President Trump to align U.S. drug prices with global standards, impacting major players like Novo Nordisk. Meanwhile, talks between Ukraine and Russia caused a dip in European arms manufacturers.
(With inputs from agencies.)
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