European Stocks Move Higher as Markets Watch Trump-Xi Summit
European stock markets traded mostly higher on Thursday as investors closely followed developments from U.S. President Donald Trump’s ongoing visit to China and his summit with Chinese President Xi Jinping.
By early European trading, the pan-European Stoxx 600 index had climbed 0.4%.
Germany’s DAX index advanced 1.1%, while France’s CAC 40 gained 0.6%. The UK’s FTSE 100 remained mostly flat during the session.
Trump and Xi Discuss Trade and Taiwan
Trump and Xi completed the first round of talks during their two-day summit in Beijing.
According to Chinese state media, Xi Jinping said negotiations, particularly around trade relations, were making progress. However, he also warned that tensions over Taiwan could negatively impact ties between the two countries.
Global investors are watching the summit closely for any developments related to the ongoing Iran conflict and its impact on the global economy.
Some analysts believe Trump could attempt to persuade China to play a larger diplomatic role in securing a lasting peace agreement involving Iran, especially given China’s position as one of the largest importers of Iranian oil.
Oil Prices Remain Elevated Amid Middle East Tensions
Markets continue to face uncertainty due to the prolonged disruption of the Strait of Hormuz, a key shipping route near Iran that handles roughly one-fifth of global oil flows.
Oil prices moved slightly higher on Thursday, with Brent crude trading above $105 per barrel. Before the outbreak of the conflict, prices were closer to $70 per barrel.
The sharp rise in oil prices has intensified concerns about higher inflation across major economies worldwide.
Recent U.S. consumer and producer inflation data further highlighted the growing impact of rising energy costs on global price pressures.
European Corporate Earnings Continue
Alongside geopolitical developments, investors also focused on corporate earnings across Europe.
Burberry reported stronger-than-expected fourth-quarter sales results, helping support sentiment in the retail sector.
Meanwhile, Polish e-commerce company Allegro raised its annual outlook for its international business division.
