European stock markets rose Monday, starting the new week on a positive note as investors digest more Ukraine peace talks as well as the potential for less severe trade tariffs under U.S. President Donald Trump.
At 04:05 ET (08:05 GMT), the DAX index in Germany climbed 0.8%, the CAC 40 in France gained 0.8% and the FTSE 100 in the UK rose 0.4%.
Targeted trade tariffs
European equity indices have started the new week higher on reports that President Trump is planning a narrower, more targeted agenda for increased trade tariffs at the start of the new month.
Trump is now expected to not impose industry-specific tariffs next week, and will instead apply reciprocal duties only on a targeted set of countries that account for a bulk of the U.S.’ foreign trade, reports from both Bloomberg and the Wall Street Journal said, on Sunday.
Trump said on Friday that there could potentially be “flexibility” for his reciprocal tariff plan.
Fears of a global trade war have weighed heavily, with investors hung up on Trump’s proposed reciprocal tariffs on trading partner countries, which are scheduled to take effect on April 2.
Ukraine ceasefire progress?
Investors will also look to talks between a U.S. delegation and Russian officials in Saudi Arabia later Monday on the potential for a ceasefire in the war in Ukraine after the U.S. delegation spoke with Ukrainian officials on Sunday.
U.S. special envoy Steve Witkoff expressed optimism on Sunday, saying he believed Russian President Vladimir Putin wanted to end the three-year-old conflict.
“I think that you’re going to see in Saudi Arabia on Monday some real progress, particularly as it affects a Black Sea ceasefire on ships between both countries. And from that, you’ll naturally gravitate into a full-on shooting ceasefire,” Witkoff said.
Eurozone PMI data due
Elsewhere, investors will have a chance to study preliminary purchasing managers’ index data for most of Europe, providing a gauge of business activity in the region’s manufacturing and services sectors.
The European Central Bank cut its main interest rate to 2.5% from 2.75% earlier this month and reduced its forecasts for economic growth in the eurozone.
Another rate cut in April is increasingly likely since inflation is slowing, wage growth is moderating and service price pressures are easing, Greek central bank chief Yannis Stournaras said on Friday.
Crude edges higher
Oil prices edged higher Monday, helped by fresh U.S. sanctions against Iran, adding to the potential for tighter supplies in the coming months.
At 04:05 ET, Brent crude futures rose 0.3% to $71.80 a barrel, and U.S. West Texas Intermediate crude climbed 0.3% to $68.51 a barrel.
Both benchmarks settled higher on Friday and recorded a second consecutive weekly gain, boosted by fresh U.S. sanctions on Iran and the latest output plan from the OPEC+ producer group, with seven of its member states set to cut output to make up for recent production increases.
Market sentiment toward oil prices has also been improved by some optimism that U.S. reciprocal tariffs may be less severe than feared
