European stocks recover after Trump delays EU tariffs in hopes of deal

Written by Nikil Sherma and Burvi Agarawal

(Reuters) -The shares of Europe the week started a positive note on Monday, and the losses of the previous session were looked, as the markets wore a sigh of relief after US president Donald Trump delayed his threat to impose a 50 % tariff in the region.

The European European European Stoxx 600 index closed the top of 1 %. She lost 0.9 % on Friday after Trump invited an unexpected tariff for goods from the European Union, saying that negotiations with the region did not move quickly enough.

On Sunday, Trump extended the deadline for definitions until July 9 of June, after European Commission President Ursula von der Lin said that the bloc was 27 countries needing more time to produce a deal.

The auto and parts index, which is sensitive to tariffs related to tariffs, has wider gains with a rise of 1.8 %. However, it was limited by a decrease of 3.3 % in Porsche.

Defense companies were among the largest reinforcements of the Stoxx 600 index, where Rheinmetall and Leonardo got more than 3 % each, and the space and defense index advances 1.7 %.

The stocks withdrew the commodity and industrial services sector by 1.5 %.

German defense and cars have helped 1.7 %, near the record.

Luxury stocks, very exposed to the United States market. KERING, LVMH and Richemont shares increased by about 1 % for each, as did the broader indicator

“Although more time for European Union and the United States negotiations is good news, the speed of recovery in stocks indicates that investors may be very optimistic about the path of commercial discussions,” said Mark Heifelli, the chief investment official of UBS Global Wealth Management.

The euro jumped alongside other currencies sensitive to risk, while the revenues of the euro region government did not change, as Trump retracted his identification threats.

The increasing concerns about the American economic slowdown and the financial problems confirmed by the reducing the credit rating of Moody on May 16, pushing investors to reduce their exposure to American assets.

“If you want to get a low -risk portfolio, the United States is the place to go to first, but with commercial tensions and geopolitical tensions, these favorable feelings have turned,” said Epscarsckaya, Square Square Square at the Swissiot Bank.

Trading volumes were lighter than usual due to public holidays in the United States and the United Kingdom. However, futures in the United States increased by more than 1 % each.

Thyssenkrup jumped by 8.8 % after the weekend report that the submarine and the manufacture of auto parts are planning to hold a meeting for shareholders on August 8 to agree to an expected offer from the warship department. Thyssenkrup was not immediately available for comment.