European Markets Poised for Positive Start as Global Trade Talks Take Center Stage

European markets are expected to open the week on a positive note, with futures data indicating modest gains across major indexes. London’s FTSE 100 is projected to open 0.14% higher, France’s CAC 40 up 0.3%, Germany’s DAX up 0.25%, and Italy’s FTSE MIB rising 0.27%. The optimistic outlook comes after a mixed performance on Monday, where the region’s Stoxx 600 slipped slightly by 0.06%.

Investor sentiment is being shaped largely by global trade developments. Markets are digesting U.S. President Donald Trump’s decision to delay higher tariffs on Chinese goods for an additional 90 days, providing both sides with more time to negotiate. This move has eased some immediate trade tensions between the world’s two largest economies.

The tariff reprieve has already made an impact in Asia-Pacific markets, where most indexes closed higher overnight. The trade truce is being interpreted as a short-term win for global markets, offering breathing room for businesses and investors concerned about the ripple effects of escalating trade barriers.

Meanwhile, U.S. markets are turning their attention toward upcoming inflation data, with the Consumer Price Index set for release today and the Producer Price Index due Thursday. These figures are expected to play a pivotal role in shaping expectations for the Federal Reserve’s next interest rate decision in September.

With the tariff pause providing temporary relief and key economic data looming, traders across Europe are watching closely for market catalysts that could shift sentiment. The combination of trade negotiations, inflation indicators, and central bank policy moves is likely to define the market narrative in the coming weeks.

Source: CNBC