European Stock Markets Start the Week on a High, Supported by Easing Trade Tensions Between Washington and Beijing

According to initial indications, the Paris CAC 40 is expected to rise by 0.32% at the opening. In Frankfurt, DAX futures show an increase of 0.41%, while the FTSE 100 in London and the European Stoxx 600 are projected to gain 0.03% and 0.28%, respectively. The announcement from the Élysée on Sunday regarding the new cabinet of Prime Minister Sébastien Lecornu provides additional political clarity. Internationally, Donald Trump's conciliatory tone towards Beijing alleviates fears of escalating trade tensions. On Friday, Washington threatened to impose 100% tariffs on Chinese goods in response to China's export restrictions on rare earth materials. However, on Sunday, Trump stated that "the situation with China will be fine," indicating his openness to dialogue and the possibility of a forthcoming meeting with President Xi Jinping. Copper prices rebounded nearly 3% to $5 per pound, recovering some of the losses incurred at the end of last week. Supply disruptions in mining continue to support prices. In the energy sector, WTI crude oil prices have risen after five months of decline. Futures for WTI crude increased by over 1% to $59.8 per barrel, with Brent crude up 1.5%, bouncing back from a five-month low reached on Friday. This recovery is attributed to Trump's change in tone regarding China, suggesting a potential de-escalation in trade tensions that could bolster global energy demand. On the geopolitical front, the U.S. president also declared that the war in Gaza is over, before embarking on a diplomatic tour in the Middle East. This tour includes a speech at the Israeli Knesset and a summit in Cairo focused on the ceasefire agreement between Israel and Hamas.