European Stocks Rebound Amid US-China Trade Tensions Easing

European stocks saw a modest rise on Monday, recovering from Friday's steep downturn. This uptick comes as U.S. President Donald Trump softened his previously aggressive trade stance against China. The pan-European STOXX 600 index increased by 0.4%, regaining some ground after a recent 1.3% dip caused by tariff threats. Trump's conciliatory approach over the weekend helped steady the markets and alleviate fears of an impending trade war. The European markets, along with Wall Street, reacted positively to this shift.

Although China's firm standpoint on tariffs continues to loom, strategists believe the market is resilient. European stocks remain just shy of last week's record highs, buoyed by a robust artificial intelligence sector and potential U.S. interest rate cuts. However, renewed trade war concerns continue to stir volatility, with significant market players like ASML and PSI Software seeing substantial gains. Europe's "fear gauge" hit a two-month peak, reflecting ongoing market anxiety.

In individual moves, PSI Software surged 35.8% following news of its acquisition by Warburg Pincus, while Exosens saw a 10.5% increase amid Theon International's acquisition plans. France's CAC 40 rose modestly due in part to Sebastien Lecornu's reappointment as Prime Minister, although political uncertainties persist. Meanwhile, Big Yellow Group's shares jumped 15.4%, fueled by early-stage acquisition considerations from Blackstone Europe.

(With inputs from agencies.)