by Diana Mandia

(Reuters) – European stock markets ended higher on Monday, as investors welcomed US President Donald Trump’s more moderate tone on trade relations between Washington and Beijing and prepared for the start of the quarterly results season.

In France, the CAC 40 gained 0.21% to 7,934.26 points, after hesitating between losses and gains in the last part of the session, which reflects the caution of investors on the eve of a key date for the new government of Sébastien Lecornu, who must deliver a high-risk general policy speech to the National Assembly on Tuesday.

The British Footsie gained 0.16% and the German Dax 0.55%.

The EuroStoxx 50 index ended up 0.58%, the FTSEurofirst 300 gained 0.40% and the Stoxx 600 gained 0.39%.

Equity markets welcomed what appears to be a desire for appeasement between the United States and China after a new outbreak of trade tensions at the end of last week. Washington, declared Donald Trump on Sunday, does not want to harm Beijing and the latter, although it defends its exports of rare earths, has not announced new reprisals against the United States.

This calmer tone has allowed investors to put aside trade fears, even if other political and economic events are likely to maintain uncertainties in the near term.

In France, the French Prime Minister, Sébastien Lecornu, reappointed on Friday evening after a week of political turbulence for the second economy in the euro zone, is already faced with motions of censure from the National Rally (RN) and La France insoumise (LFI), which he will only be able to escape if he benefits from the support of all his partners and obtains at least an abstention from around sixty socialist deputies.

The general policy speech of the tenant of Matignon, scheduled for Tuesday, should prove decisive, and in particular his comments on pension reform and taxation.

The week also promises to be busy on the business front, with the publication on Tuesday of the results of luxury and advertising giants LVMH and Publicis, as well as a series of leading American banks.

VALUES

In Paris, Nexans fell 9.2% after announcing on Monday the appointment of Julien Hueber as general manager, with immediate effect, as well as its decision to part ways with his predecessor Christopher Guérin.

Exosens, on the other hand, gained 10.4% after Theon announced its intention to take a 9.8% stake.

Shares of European chip makers recovered after being hit hard on Friday by fears of a new trade war between the United States and China. Besi, ASMI, ASML and STMicroelectronics rose between 1.7% and 3.7%

In London, Big Yellow Group jumped 15.4% after Blackstone Europe said it was in the early stages of considering a possible bid for the furniture storage chain.

AT WALL STREET

In New York, investors welcome the more moderate tone of American President Donald Trump who has allayed concerns about trade relations between the United States and China.

At closing time in Europe, the Dow Jones advanced by 1.28%, the Standard & Poor’s 500 by 1.53% and the Nasdaq Composite by 1.99%.

CHANGES

The US dollar recovered from the fall recorded on Friday due to Donald Trump’s comments and advanced 0.28% against a basket of reference currencies.

The euro lost 0.4% to 1.1571 dollars.

RATE

The European bond market moved slightly on Monday.

The ten-year German Bund yield ended slightly lower at 2.6306%. The two-year lost 1.4 basis points to 1.9402%.

In France, the yield on the ten-year OAT ended stable at 3.4658% and its gap with the German Bund at the same maturity stood at 83.35 basis points.

The US bond market is closed on Monday due to Columbus Day.

OIL

Oil prices are rising on Monday after hitting their lowest level in five months on Friday.

Brent rose 0.81% to $63.24 per barrel and American light crude (West Texas Intermediate, WTI) rose 0.97% to $59.47.

The situation in the Middle East remains closely watched by investors, while Hamas handed over the last twenty living hostages it held in Gaza on Monday, as part of the first phase of a ceasefire agreement with Israel which aims to pave the way for lasting peace in the region.

The Organization of the Petroleum Exporting Countries (OPEC) on Monday maintained its forecast for relatively high growth in global oil demand for this year and next, and suggested the oil market will experience a much smaller supply deficit in 2026 as OPEC+ continues its production increases.

METALS

Gold hit a record of $4,100 an ounce on Monday, a sign that uncertainty remains high.

Analysts from Bank of America and Société Générale also expect the metal to reach $5,000 per ounce in 2026, they said on Monday.

(Writing by Diana Mandiá, editing by Kate Entringer)

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