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European Stocks Mixed as U.S.-China Trade Deal Fades from Focus

European Stocks Mixed as U.S.-China Trade Deal Fades from Focus. Source: Alf van Beem, Public domain, via Wikimedia Commons

European stock markets traded mixed on Tuesday as the initial optimism from the U.S.-China trade truce faded, shifting investor focus back to economic data and earnings. As of 03:02 ET (07:02 GMT), Germany’s DAX rose 0.2%, while France’s CAC 40 dipped 0.1% and the U.K.’s FTSE 100 fell 0.2%.

Markets had opened the week higher after the U.S. and China agreed to suspend major tariffs for 90 days. However, investor sentiment cooled as attention returned to weaker economic fundamentals across Europe.

In the U.K., labor market data showed further softening. Employment declined and wage growth slowed, pushing the unemployment rate up to 4.5% in the three months through March, up from 4.4%. Investors now await the ZEW survey on German investor sentiment, which is expected to recover from lows triggered by earlier tariff tensions.

Meanwhile, eyes are on upcoming eurozone Q1 GDP data and inflation figures from major EU economies, both likely to shape expectations ahead of the European Central Bank’s June meeting. The ECB has already cut rates seven times over the past year as inflation eases, with another cut possibly on the horizon.

In corporate news, Bayer (OTC:BAYRY) reaffirmed its 2025 outlook despite a sharp Q1 profit drop, thanks to gains in its pharma and consumer health units. Duerr (ETR:DUEG) reported a fall in new orders but noted stable sales and better earnings.

Oil prices steadied near two-week highs as traders processed the U.S.-China trade breakthrough. Brent rose 0.1% to $65.02, and WTI climbed 0.2% to $62.04 after Monday’s 1.5% gains.

While the trade truce offers short-term relief, unresolved tensions between the U.S. and China continue to cloud the outlook.

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