European Stocks Experience Modest Gains Amid Trade Talks and Earnings Reports

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European Markets Show Slight Gains

On Monday, European stocks exhibited modest gains as investors assessed the potential easing of tariff disputes alongside a crucial week for corporate earnings and economic data releases. As of 10:55 am Turkish time, the pan-European Stoxx 600 gained 0.3%, with France’s CAC 40 rising by 0.5%, Germany’s DAX up by 0.3%, and the UK’s FTSE 100 increasing by 0.3%. Numerous other indices across the region echoed this positive trend.

Trade Optimism and Uncertainty

Investor sentiment was buoyed last week by hopes of negotiations between the US and China, aimed at resolving the escalating trade conflict between the world’s two largest economies. The US has levied tariffs of at least 145% on Chinese imports, prompting Beijing to retaliate with its own 125% tariffs.

Despite the optimism, uncertainties linger regarding the future of US-China trade relations. Notably, US Treasury Secretary Scott Bessent refrained from confirming President Donald Trump’s assertion that dialogues between Washington and Beijing had commenced. Although Trump claimed to have communicated with Chinese President Xi Jinping, Bessent mentioned he was unaware of any such conversation.

Bessent, while appearing on ABC’s This Week, stated that Trump and Xi maintain a “very good relationship” and “a lot of respect for each other.” He also mentioned interactions with Chinese officials at last week’s International Monetary Fund meetings in Washington, without disclosing specifics about tariffs. Bessent, regarded as a pivotal figure in potential negotiations, acknowledged the complexity of the talks and refrained from providing a timeline for a possible resolution.

Corporate Earnings in Focus

This week, several major US companies are scheduled to release their quarterly earnings, with significant attention on leading technology firms. Renowned tech giants such as Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Meta Platforms (NASDAQ:META) will disclose their performance. These companies are part of the “Magnificent Seven” tech conglomerates that have significantly influenced stock markets in recent years, despite experiencing setbacks at the outset of 2025.

In Europe, the earnings season is also gaining momentum. On Tuesday, Adidas (OTC:ADDYY), AstraZeneca (NASDAQ:AZN), and Novartis (SIX:NOVN) will report their earnings. Stellantis (NYSE:STLA), Volkswagen (ETR:VOWG_p), and Airbus are set to announce their results on Wednesday, followed by Shell (LON:RDSa) and Standard Chartered on Friday. Regional financial institutions, including Deutsche Bank, Barclays, and Santander (BME:SAN), are also expected to disclose their earnings.

Notable Developments

On Monday, Airbus‘ shares saw an uptick following the finalization of its agreement to acquire assets from supplier Spirit AeroSystems (NYSE:SPR). Concurrently, Italy’s Mediobanca (OTC:MDIBY) announced a 6.3 billion euro bid for private lender Banca Generali (BIT:GASI).

Investors are keenly anticipating key European inflation data and other critical US economic indicators due this week.

Oil Prices and OPEC+ Meeting

In the commodities market, oil prices remained relatively stable. As of 11:13 am Turkish time, Brent crude futures for June delivery rose by 0.2% to $66.99 per barrel, while West Texas Intermediate crude futures increased by 0.2% to $63.17 per barrel. The ongoing US-China trade war and OPEC+’s forthcoming production decisions continue to weigh on traders’ minds. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) are anticipated to announce a production increase during their meeting next week, marking the second consecutive month of such an adjustment.