European Markets Rebound Amid Eased Trade Tensions
European shares showed a modest recovery amid eased trade tensions between the U.S. and China, improving moods on Wall Street. Stock indices like the STOXX 600 and CAC 40 climbed, boosted by potential U.S. rate cuts and key company movements, despite ongoing tariff uncertainties and French political issues.
In the early hours of trading on Monday, European shares witnessed a modest rebound after U.S. President Donald Trump toned down his aggressive trade stance on China. This easing of tensions followed Friday's panic-induced selloff sparked by threats of steep tariffs on Chinese imports.
The pan-European STOXX 600 index rose by 0.4% during morning trading, recovering some ground after a concerning 1.3% decline previously. The conciliatory tone adopted by Trump over the weekend not only bolstered European markets but also steadied Wall Street futures, as investors engaged in strategic dip buying.
Despite fears of heightened tariff-related uncertainty reemerging, optimism surrounding a promising artificial intelligence trade and speculation of U.S. rate cuts buoyed European stocks. Meanwhile, sector-specific movements saw PSI Software's shares soar 34% amid acquisition talks, showcasing dynamic shifts in market strategies.
(With inputs from agencies.)
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