European stock indices advanced on Monday, kicking off the week with modest gains as investors appeared to take advantage of last week’s sharp selloff. The rebound comes amid ongoing global trade tensions and renewed expectations for interest rate cuts in the U.S.
By 07:05 GMT, Germany’s DAX had added 0.3%, France’s CAC 40 climbed 0.5%, and the UK’s FTSE 100 rose 0.2%. The uptick follows a difficult end to the previous week, when the pan-European Stoxx 600 posted its worst daily performance since April, dragged down by the U.S. administration’s latest round of global tariffs announced on August 1.
Traders Look Past Tariffs, Focus on Fed Easing
Despite lingering concerns over U.S. trade policy, particularly under the Trump administration, market participants appeared willing to “buy the dip” following Friday’s disappointing U.S. employment data. The weaker-than-expected nonfarm payrolls report has strengthened market conviction that the Federal Reserve will lower interest rates in the coming months.
Current futures pricing reflects expectations for around 60 basis points of rate cuts by year-end—nearly double the projections before Friday’s jobs release. There is now an 83% probability priced in for a rate cut as early as September.
Monday’s European economic calendar is light, leaving investors to focus on potential signals from U.S. factory orders data, due later in the day, as a gauge of how American businesses are handling new tariffs.
Meanwhile, political uncertainty continued in Washington. Over the weekend, President Donald Trump announced plans to name a new chief statistician, following the abrupt dismissal of Erike McEntarfer, the former head of the Bureau of Labor Statistics. Trump accused her of falsifying job data but has not provided evidence.
Earnings Roundup: Senior Delivers, PostNL Disappointed, UBS Pays Settlement
The Q2 earnings season has slowed, but several notable updates emerged Monday. Senior PLC (LSE:SNR) posted a 32% increase in pretax profit for the first half of fiscal 2025, supported by solid performance in both its Aerospace and Flexonics segments.
Dutch postal and logistics group PostNL (EU:PNL) reported a €24 million loss for the quarter, following a €40 million impairment tied to the government’s refusal to support its mail division. The news raises concerns over the company’s long-term strategy in a challenging market.
UBS (NYSE:UBS) confirmed it will pay $300 million to settle outstanding liabilities related to mis-sold mortgage-backed securities by Credit Suisse in the U.S.—part of the fallout from the bank’s 2023 acquisition.
Oil Prices Hold Firm Despite OPEC+ Output Increase
Crude oil prices were relatively stable in early trading, despite fresh supply pressures. OPEC and its allies, known collectively as OPEC+, announced a planned production boost of 547,000 barrels per day for September—bringing a full reversal of previous cuts forward.
As of 03:10 ET, Brent crude was down slightly at $69.80 per barrel, while WTI crude inched up 0.3% to $67.53. The supply increase, which aligns with market forecasts, reverses the bloc’s most significant production curbs, equivalent to roughly 2.4% of global demand.
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