ADVERTISEMENTEuropean markets opened the new week with solid gains, buoyed by renewed investor optimism after US President Donald Trump announced that major tech products such as semiconductors and smartphones would be temporarily exempt from the higher tariffs on Chinese imports.
However, the US administration clarified that these items remain subject to the existing 20% fentanyl-related tariffs, and a special tariff on semiconductors and electronics will be introduced in around a month.
Chinese authorities welcomed the decision, calling the US tariff exemption a small but constructive step toward correcting previous wrongdoings.
By 8:15am CEST, the Euro STOXX 50 index – which tracks blue-chip companies across the eurozone – had risen 1.5%, while the broader Euro STOXX 600 was up 1.6%. Germany’s DAX 50 led regional performance with a 2.2% gain, followed by France’s CAC 40, which climbed 1.8%. Italy’s FTSE MIB and Spain’s IBEX 35 posted more modest increases of 1.2% and 1.0%, respectively.
Investors are also awaiting first-quarter revenue figures from French luxury conglomerate LVMH, which could provide insight into consumer behaviour and the resilience of demand in the high-end sector.
In macroeconomic developments, Chinese exports rose sharply by 12.4% year-on-year in March 2025, reaching USD 313.9 billion (€275.8bn). This figure significantly exceeded market expectations of a 4.4% increase and represented a steep acceleration from the 2.3% growth recorded in the January to February period. It marked the fastest expansion in overseas sales since last October, indicating a likely frontloading of shipments ahead of the anticipated implementation of new US tariffs.
Top gainers in European markets on Monday
Among the top performers in the Euro STOXX 50 index were major European banks. Deutsche Bank gained 4.2%, BNP Paribas advanced by 4.1%, and Société Générale rose 3.5%. Dutch semiconductor giant ASML Holding also posted a strong performance, climbing 2.8%.
Energy stocks were buoyed by a rebound in oil prices. Repsol increased by 3.2%, while Eni added 2.5%. In Germany’s DAX index, alongside Deutsche Bank, Sartorius rose by 3.6%, Puma added 3%, and Fresenius Medical Care also gained 3%.
In the French market, STMicroelectronics surged by 6.5%, reflecting strong investor confidence. In Italy, Tenaris and Saipem both climbed 4%.
Euro hits 1.14 as dollar weakness persists
The euro rallied to 1.14 against the greenback, retesting Friday’s highs and aligning with its strongest levels since February 2022. The move was driven by ongoing dollar weakness in the foreign exchange market.
Chris Turner, analyst at ING, noted that “the dollar continues to trade on a weak footing”, and raised the possibility that currency policy may feature in upcoming trade negotiations led by Scott Bessent with Japan and China.
Luca Cigognini, Market Strategist at Intesa Sanpaolo, commented that a break above 1.14 would open the door for a move toward 1.1500, the level last seen in early 2022. He also added that the trade war initiated by President Trump is favouring defensive currencies and undermining the “dollar’s traditional role as a safe haven”.
The European Central Bank is scheduled to meet on Thursday to decide on interest rates. Market participants remain divided over whether Frankfurt will opt to hold rates steady or implement a cut.
Meanwhile, eurozone bond yields declined. German two-year yields fell by five basis points to 1.78%, while the 10-year Bund yield dropped three basis points to 2.55%.
Gold futures edged 0.2% lower after the precious metal had reached record highs against the dollar last Friday, briefly surpassing $3,200 (€2,830) per ounce.