European stocks advanced Monday, as analysts said recent trade-related tensions seemed to be easing.
How markets are moving
The Stoxx Europe 600 index SXXP, +0.51% tacked on 0.2% to 366.68, stabilizing after closing out last week at its lowest level since February 2017. The pan-European benchmark suffered a weekly decline of 3.2%, its largest such retreat since the week ended March 2.
In Frankfurt, the DAX 30 DAX, +0.66% rose 0.5% to 11,939.27, and in Paris, the CAC 40 index PX1, +0.52% gained 0.2% to 5,106.90. The FTSE 100 index UKX, +0.44% added 0.3% to 6,939.74 in London.
The euro EURUSD, +0.3966% traded at $1.2402, up from $1.2356 late Friday in New York.
What’s driving markets
Fears about a possible global trade war have weighed on markets around the world this month, helped by news that U.S. President Donald Trump is pushing for tariffs on Chinese products totaling up to $60 billion.
But such concerns may be abating on Monday, thanks to reports that Washington and Beijing are talking behind the scenes to avoid a trade war. U.S. Treasury Secretary Steve Mnuchin said Sunday that he’s “cautiously hopeful” that the world’s two biggest economies will reach an agreement to avoid tariffs. American stock futures ESM8, +1.38% were trading sharply higher.
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On the data front, a fresh reading on France’s gross domestic product showed a year-over-year rise of 2.5%, matching expectations.
What strategists are saying
“Traders are hopeful that the U.S. Treasury secretary, Steven Mnuchin, may help them to save the day,” said Naeem Aslam, chief market analyst at Think Markets UK, in a note.
“The French GDP is also helping in maintaining the positive momentum,” Aslam added.
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Stock movers
Dublin-listed shares in Smurfit Kappa Group PLC SKG, -4.32% SK3, -3.45% SMFKY, +0.76% fell 2.9% after the Ireland-based packaging-and-paper company rejected a revised bid from International Paper Co. IP, -2.45% that offered shareholders a total of 37.54 euros ($46.37) a share.
Roche Holding AG shares ROG, +1.69% rose 1.3% after the Swiss pharmaceuticals heavyweight reported positive results for a lung-cancer treatment.