European stock markets experienced a notable upswing on Monday. The STOXX 50 surged approximately 1.8% while the STOXX 600 increased by 1.1%, mirroring the global stock market's upward momentum. This surge followed a weekend trade negotiation between the US and China, which concluded with both nations agreeing on significant tariff reductions. The United States plans to decrease tariffs on Chinese exports from 145% to 30% over the next 90 days. Similarly, China will reduce its tariffs on American imports from 125% to 10% for the same period. This development marks an important step towards easing the trade tensions, reflecting a mutual willingness to pursue compromise instead of extending the tariff conflict.
The sectors witnessing the most robust performance were basic resources, automotive, technology, and oil and gas. Conversely, the healthcare sector lagged behind, with notable declines in share prices. Novo Nordisk's shares dropped nearly 8%, AstraZeneca's by about 4%, and GSK's by nearly 3%. These downturns followed President Trump's announcement of an impending executive order aimed at aligning prescription drug prices in the US with those in other high-income countries.
