European stocks opened on a high note Monday after US President Donald Trump postponed the 50% tariffs on European Union goods, offering a brief respite to investors.
The move, announced late Sunday after a call between Trump and European Commission President Ursula von der Leyen, calmed fears rattling markets across Europe and the US last week.
The Stoxx 600 index rose by 1% shortly after the opening bell, pushing all sectors into positive territory. France’s CAC 40 climbed 1.3%, Germany’s DAX advanced 1.8%, and UK markets closed for a public holiday. On Friday, Trump initially announced the tariffs on Truth Social, stating that the European bloc was “very difficult to deal with” and that talks were “going nowhere.” The decision to postpone the tariffs, now set for July 9, gives the EU more time to negotiate. Ursula von der Leyen posted on X that the EU was “ready to advance talks swiftly and decisively.”
Auto sector rebounds as fears ease
The auto sector led the rebound, reversing losses from the prior session. Shares of BMW rose 1.4%, Mercedes-Benz increased 1.5%, and Volkswagen matched that gain. Automakers, heavily exposed due to vehicles and machinery exports to the US, were among the hardest hit by Trump’s tariff announcement.
The weekend’s reversal provided temporary relief for investors. Barclays analysts called the initial 50% tariff a “negotiating tactic,” but that did not stop US markets from closing lower on Friday. The S&P 500, Dow Jones, and Nasdaq dropped over 2%, further pressured by rising Treasury yields. The yields surged after Trump’s new tax proposal, which could add $2.3 trillion to the national deficit.
Crypto market remains steady
The weekend’s political uncertainty didn’t move cryptocurrency prices much. Bitcoin nearly recovered to $110,000, Ethereum stuck around $2,575, and XRP remained unchanged at $2.35. In response to the tariff delay, none of the major coins moved much. The volatile political decisions affected the crypto sector, and market analysts commented on this fact. The news appeared to be attracting little reaction from investors for now, and they remained focused on future developments.
Asia mixed as global markets wait
Market performance was mixed in Asia. China and Hong Kong had down days, while Japan and South Korea stocks rose overnight. Wall Street was closed meanwhile for Memorial Day, which helped fuel the cautious tone. Attention now shifts to July 9, when the postponed tariffs are due to take effect if talks break down. Investors are watching every announcement and potential flip of the policy switch closely.
The post European stocks surge as crypto market remains steady after Trump delays tariffs first appeared on Coinfea.
