European indices posted collective gains in the opening session of the week today, Monday, May 26, with markets absent in the United Kingdom, which is celebrating its spring break. Trump’s remarks during the holiday supported the rise in European indices amid the absence of economic figures in the opening session.
US President Donald Trump announced yesterday, Sunday, on the social media platform Truth Social, that he had agreed to postpone the 50% tariff increase he imposed on the European Union, which was scheduled to take effect on June 1, but was postponed until June 9 after the US President held a phone call with European Commission President Ursula von der Leyen, who announced her willingness to engage in serious negotiations, according to President Trump’s statements.
The European Union is the largest trading partner of the United States, and this postponement of the tariffs and the positive bets on serious negotiations are reflected directly in the markets, as European indices rose by more than 1% today after these remarks. Any escalation in tensions or failure to reach an agreement could cause a strong sell-off in European indices and high-risk assets. Auto markets are recording gains today after losing more than 3% in the closing session last week, following Trump’s statements that trade talks with the European Union had made no progress and that tariffs could take effect on June 1. Auto stocks rose 1.5% today, with BMW up 2%, Mercedes-Benz up 2.15%, and Volkswagen up 2.10%.
The German DAX index rose 1.66% to trade at 24,021 points, while the French CAC 40 index rose 1.24% to trade at 7,830 points. The European STOXX Europe 600 index was trading up 0.94% at 550.20 points.
Siemens AG and Rheinmetall AG led the rise in the German DAX index, with gains of more than 2%, while Zealand Pharma and Valeo led the rise in the STOXX Europe 60 index, with gains of more than 7% and 4%, respectively.