European Stocks Rise As U.S.-China Trade Tensions Ease
European stocks rose on Friday as investors assessed signs of easing trade tensions between the United States and China, raising hopes of a further trade deal before a U.S. tariff pause deadline is lifted in July.
The pan-European STOXX 600 index, which opened up 0.6 percent at 540.67 points, as of 0707 GMT. It was on track for its first weekly gain in three weeks. Other major regional indexes also traded higher.
The United States has reached a deal with China on how to speed up shipments of rare earths to the United States, a White House official said on Thursday. With concerns about tensions in the Middle East easing for now, investors are focused on signs of progress on a new trade deal before a suspension of higher tariffs threatened by U.S. President Donald Trump expires in early July.
European Union leaders discuss a new U.S. proposal for a trade deal at a summit in Brussels on Thursday. Commission President Ursula von der Leyen did not rule out the possibility of a breakdown in tariff talks, saying "all options are on the table".
European auto stocks led sector gains with a 1.5% gain. Media stocks rose 1.2%.
German sportswear maker Puma and Adidas rose 4.3% and 2.9% respectively, after their US peer Nike's first-quarter earnings outlook beat market expectations.
In the US, investors await the release of the core PCE price index due later in the day. (alg)
Source: Reuters
