European stocks extend gains after White House hints at tariffs extension

European autos stocks notched gains during early trade on Friday, as investors reacted to the White House saying the looming deadline for country-specific tariffs to come into effect was “not critical” and “could be extended.”

The moves also came after Beijing said it had agreed with Washington on the details of a trade agreement negotiated in London earlier this month.

Europe’s Stoxx Automobiles and Parts index, which has shown sensitivity to U.S. trade policy announcements this year, was last seen trading around 1.5% higher.

Top movers in the sector included Porsche and French vehicle parts supplier Valeo, both up 2.2%, as well as Stellantis, which gained 2%, and Mercedes-Benz, shares of which jumped 1.6%.

— Chloe Taylor

The U.S. and China have further confirmed the details of the trade agreement reached by both sides earlier this month in London, according to a statement released by China’s Ministry of Commerce Friday afternoon.

Read more here.

— Anniek Bao

We’re 10 minutes into the final trading session of the week, and stocks are firmly in positive territory after White House Press Secretary Karoline Leavitt fueled optimism on Thursday about the looming reciprocal tariffs deadline.

The pan-European Stoxx 600 index was last seen trading up 0.6%, with most sectors edging higher.

The tariffs-sensitive autos and mining sectors led gains, jumping 1.4% and 1.1%, respectively. Utilities stocks, often used as a hedge against market turbulence, were down by 0.1% during early trade.

— Chloe Taylor

Italian lender Mediobanca pledged on Friday to return 4.9 billion euros ($5.7 billion) to shareholders over the next three years, as it continued to push back against a hostile takeover bid from domestic rival Monte dei Paschi di Siena (MPS).

In a statement, Mediobanca said the proposed MPS offer “lacks an industrial and financial rationale for Mediobanca shareholders and carries clear and significant execution risks.”

“The combined entity would have the profile of a medium-sized undifferentiated commercial bank, with high capital absorption, highly sensitive to the macroeconomic environment, without strengthening any of Mediobanca’s business segments and with the risks inherent in MPS’s financial statements remaining unchanged,” it said.

CNBC reached out to MPS for comment.

Read more on MPS’ 13-billion-euro bid for Mediobanca here.

— Chloe Taylor

Good morning from London.

European equities look set to extend yesterday’s gains at the open on Friday.

Futures tied to the FTSE 100 are marginally higher, while those tied to Germany’s DAX and France’s CAC 40 indexes are up by 0.8% and 0.6%, respectively.

It comes after the Trump administration said the July deadlines for so-called reciprocal tariffs “could be extended” and are “not critical.”

— Chloe Taylor

President Donald Trump could extend looming deadlines for reimposing steep tariffs on imports from most of the world’s countries, the White House said Thursday.

Trump’s July 8 and 9 deadlines for restarting tariffs on those nations are “not critical,” White House Press Secretary Karoline Leavitt told reporters.

“Perhaps it could be extended, but that’s a decision for the president to make,” Leavitt said.

Leavitt also said Thursday that if any of those countries refuse to make a trade deal with the United States by the deadlines, “The president can simply provide these countries with a deal.”

In late May, Trump threatened to impose tariffs of 50% on imports from European Union nations, all of whom had already been subject to the reciprocal tariffs imposed in April.

Read more here.

— Kevin Breuninger