European stock markets opened the week with slight gains as investors continued to navigate the shifting trade environment.
By 07:05 GMT, Germany’s DAX index inched up 0.1%, France’s CAC 40 advanced 0.2%, and the U.K.’s FTSE 100 increased by 0.2%.
Last week, key European indices posted solid gains, following Wall Street’s lead, buoyed by strong second-quarter earnings and a recent trade deal between the European Union and the United States that diminished the risk of an expensive trade conflict.
Trade Talks Between U.S. and China Take Center Stage
Meanwhile, the picture was less optimistic elsewhere as new tariffs imposed by the Trump administration came into force on Thursday, with some import duties reaching as high as 50% on regional economies.
Moreover, the current tariff ceasefire between the U.S. and China is set to expire on August 12.
Although markets remain hopeful for an extension, uncertainty lingers about the future, given that a trade dispute between the world’s two largest economies could have far-reaching global impacts.
U.S. President Donald Trump commented Monday that he hopes China will “quickly quadruple” its soybean purchases from American farmers, presenting this as a strategy to reduce Beijing’s trade deficit with Washington.
Earnings Reports Thin as Summer Progresses
Corporate earnings releases are light this Monday as the market moves deeper into the slow summer period.
Marshalls (LSE:MSLH) reported a decline in profits for the first half of 2025 compared to the previous year, attributing the drop to weaker margins in its Landscaping Products segment, which offset improvements in Roofing and Building Products.
Danish offshore wind developer Orsted (TG:D2G) announced plans for a rights issue amounting to approximately $9.4 billion, citing challenges in the U.S. offshore wind sector.
“We believe we are approaching the time to look for the next leg higher in the eurozone,” said analysts at JPMorgan in a recent note.
“In the interim, the market needs to work through the stagflationary risks stemming from the U.S., and also the more mixed European earnings delivery.”
Oil Prices Decline Ahead of U.S.-Russia Talks on Ukraine
Oil prices extended last week’s losses on Monday ahead of planned discussions between the U.S. and Russia regarding the ongoing conflict in Ukraine.
At 03:05 ET, Brent crude futures dropped 1% to $65.93 per barrel, while U.S. West Texas Intermediate futures fell 1.1% to $63.16 per barrel.
Both benchmarks fell more than 4% last week after news emerged that President Trump is scheduled to meet Russian President Vladimir Putin on August 15 in Alaska to negotiate a resolution to the Ukraine war.
Expectations are rising for a possible lifting of sanctions that have restricted Russian oil supplies to the global market.
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