European Markets Rise as Trump Delays EU Tariffs
European stock markets opened higher on Monday after U.S. President Donald Trump announced on Sunday that he would delay a proposed 50% tariff on European Union imports. This marks a change from his stance last week, when he threatened the tariff amid stalled trade negotiations.
By 07:35 GMT, Germany’s DAX index was up 1.4%, while France’s CAC 40 had risen approximately 1%. Markets in both the United Kingdom and the United States remained closed on Monday due to public holidays.
Tariff Threat Paused
Last Friday, Trump had stated he would impose a 50% tariff on EU goods beginning June 1, citing his dissatisfaction with the progress of trade talks. On his platform, Truth Social, he criticized the EU as being “very difficult to deal with” and expressed frustration at the lack of movement in discussions.
However, by Sunday, Trump announced that he would push the tariff deadline to July 9 after speaking with European Commission President Ursula von der Leyen. Following the call, von der Leyen took to social media (X) to share her optimism, saying the EU was ready to engage in meaningful negotiations promptly.
Oil Prices Edge Up Amid Tariff Delay
Crude oil prices rose slightly on Monday in response to Trump’s decision to postpone the tariff hike, though gains were kept in check by lingering concerns about oversupply. Reports that OPEC+ may increase production in July continued to weigh on sentiment.
As of 03:28 ET, Brent crude futures were up 0.06%, trading at $64.30 per barrel. West Texas Intermediate (WTI) futures rose 0.08% to $61.61 per barrel.
German Auto Stocks Rally
German carmakers saw strong gains following the tariff delay. Shares in Mercedes-Benz Group AG jumped more than 1.7%, Bayerische Motoren Werke AG (BMW) gained over 1.3%, and Volkswagen AG advanced around 1.7%.
EVN AG Reports Strong First-Half Results
Austrian energy and utility company EVN AG saw its stock rise over 3% on Monday after releasing a robust earnings report for the first half of its 2024/25 fiscal year. The performance was attributed to increased energy demand and a well-balanced business model.
The company reaffirmed its full-year outlook, expecting net profit between €400 million and €440 million, and maintained its dividend policy of no less than €0.82 per share.
Citi Lifts Short-Term Gold Forecast
Citigroup raised its short-term gold price forecast to $3,500 per ounce amid rising global tensions and tariff-related uncertainty. In an investor note released Sunday, the bank projected gold to trade in the $3,100–$3,500 range, up from its previous $3,000–$3,300 estimate.
Despite this upward revision, Citi expressed caution over the long-term outlook for gold, citing potential shifts in economic growth, equity market risk, and the upcoming U.S. midterm elections and possible Fed rate cuts. The bank noted that household gold holdings are currently at their highest levels in five decades. Forecasts for platinum and palladium remain unchanged at $1,050 and $900 per ounce, respectively.
