Investing.com - Shares in Europe inched higher on Monday, as investors gauge the prospect of softening tariff tensions and a crucial week of corporate earnings and economic data.
By 03:55 ET (07:55 ET), the pan-European Stoxx 600 had climbed by 0.3%, while the CAC 40 in France had gained 0.5%, the DAX in Germany had increased by 0.3%, and the FTSE 100 in the U.K. had advanced by 0.3%. Several other averages in the region were also in positive territory.
Hopes that the U.S. is open to negotiating with China over tariffs and cooling down an intensifying trade dispute buoyed European stocks last week.
Optimism remains that the negotiations could lead to a deal that will end a spat between the world’s two largest economies. The U.S. has slapped import tariffs of at least 145% on China, leading Beijing to respond with 125% tariffs of its own.
Still, Uncertainty clouds the trajectory of any detente in the U.S.-China trade dispute, particularly after U.S. Treasury Secretary Scott Bessent failed this weekend to back up a claim from President Donald Trump that talks between Washington and Beijing had begun.
Bessent added that he did not know if Trump had spoken with Chinese President Xi Jinping, even after the White House indicated that it was open to ratcheting down trade tensions. Trump had said the discussions were taking place with China and that he had had a conversation with Xi.
Speaking to ABC’s "This Week" program, Bessent only noted that Trump and Xi have a "very good relationship and a lot of respect for each other." Bessent also said he had had interactions with officials from China at last week’s International Monetary Fund meetings in Washington. He did not say if they talked about tariffs.
In recent days, Bessent, who is viewed as a major player in any potential negotiations, has said that the talks will be a "slog" and did not lay out a timetable for a possible agreement.
Against this backdrop, a range of major U.S. companies, including some of the biggest names in the all-important technology sector, are due to report this week.
Software giant Microsoft (NASDAQ: MSFT ) and iPhone-maker Apple (NASDAQ: AAPL ) will be among the mega-cap tech names to report, as well as e-commerce titan Amazon (NASDAQ: AMZN ) and Instagram-owner Meta Platforms (NASDAQ: META ). All of the companies form part of the so-called "Magnificent Seven" cadre of tech behemoths which have led stock markets higher in recent years but have faltered to begin 2025.
The quarterly earnings season is kicking into high gear in Europe as well. Adidas (OTC: ADDYY ), AstraZeneca (NASDAQ: AZN ) and Novartis (SIX: NOVN ) are due to report on Tuesday, followed by Stellantis (NYSE: STLA ), Volkswagen (ETR: VOWG_p ) and Airbus on Wednesday, and Shell and Standard Chartered on Friday. A bevy of regional lenders -- such as Deutsche Bank, Barclays, and Santander (BME: SAN ) -- are also set to report.
In individual stocks on Monday, shares in Airbus rose after the planemaker finalized a deal to take over some assets from supplier Spirit AeroSystems (NYSE: SPR ).
Meanwhile, Italy’s Mediobanca (OTC: MDIBY ) has unveiled a 6.3 billion-euro bid for private lender Banca Generali (BIT: GASI ).
Investors were also awaiting critical European inflation data and other U.S. economic indicators this week.
Elsewhere, oil prices hovered around the flatline, as traders remained on edge over a U.S.-China trade war and OPEC+ plans to increase production.
Brent oil futures for June inched up 0.2% to $66.99 a barrel, while West Texas Intermediate crude futures were rose by 0.2% to $63.17 a barrel by 04:13 ET.
Oil prices have been nursing steep declines this year, as Trump’s tariff agenda has drummed up worries over the global economy and demand for crude.
Markets were also awaiting a meeting of the Organization of the Petroleum Exporting Countries and its allies -- known as OPEC+ -- which is set to take place next week. Members of the producer group are widely expected to increase output for a second consecutive month.