European stock markets were broadly higher on Monday morning, as investors parsed news of a U.S. tariff exemption for some tech items while the earnings season kicks into gear.
The pan-European Stoxx 600 index was 2.2% higher at 9:30 a.m. London time with all sectors in the green, bolstered by technology gains of 3%. Oil and gas stocks jumped 3.4% despite forecasts of weaker oil prices in 2025, while banks rose 3%.
U.S. President Donald Trump’s extreme and fast-changing tariff policy has led to one of the most volatile periods on record for global equities. After a strong start to the year in which it had been outperforming U.S. markets, the Stoxx 600 has fallen more than 8% in April so far, while Wall Street’s S&P 500 has lost 4.43%.
In fresh developments over the weekend, smartphones, computers, and other electronic devices and components were exempted from the U.S. duties — though only temporarily, according to officials. U.S. Customs and Border Protection guidance indicates 20 product categories are exempt from the 125% tariff newly-imposed by Trump on Chinese imports and the 10% baseline tariff on imports from other countries, while a 20% tariff on all Chinese goods remains in effect.
Stoxx 600 index.
Currency and bond markets have also been swept up in the action, with the euro climbing to its highest level against the U.S. dollar for more than three years. The yield on the U.S. 10-year Treasury jumped from 3.99% at the start of last week to 4.49% by Friday, with its spread over the German 10-year bund widening by the most since 1990.
Meanwhile, investors must also contend with the start of first-quarter earnings season this week, with companies now facing a hugely uncertain trade environment. In Europe, luxury giant LVMH will report after the market close. Stateside, investment bank Goldman Sachs will report.
It is relatively quiet on the data front, but inflation figures will be released in the coming days ahead of the European Central Bank’s April meeting on Thursday.
Asia-Pacific markets gained on Monday, as U.S. stock futures rose.