European markets advance as tech stocks rally on tariff exemptions

European stock markets rebounded on Monday, led by a surge in technology shares, after US President Donald Trump granted tariff exemptions on Chinese smartphones and computers, easing pressure on markets rattled by weeks of trade tensions.

The pan-European STOXX 600 index rose 2.25 per cent by 10:37 am GMT, marking one of its strongest sessions in recent weeks. Germany’s DAX climbed 2.52 per cent, France’s CAC 40 added 2.18 per cent, Spain’s IBEX 35 gained 1.76 per cent, and the UK’s FTSE 100 advanced 1.86 per cent.

Investors took the move as a tentative sign of flexibility in US-China trade negotiations, following a volatile period that has seen the benchmark index fall roughly 12 per cent from its record closing high.

“It’s perhaps a sign of the start of the negotiation phase,” said Richard Flax, chief investment officer at Moneyfarm. “There’s still more than a little bit of uncertainty around how this will actually play out, but investors perhaps see the signs of flexibility.”

Flax cautioned against reading too much into any single statement from the US administration, warning that policy direction remains fluid. “Investors are unlikely to take any particular comment and ascribe too much significance to it,” he said.

Despite the bounce, analysts noted that broader concerns over slowing global demand and lingering trade friction could continue to weigh on sentiment in the coming weeks.

Attribution: Investing.com, Amwal Al Ghad English, Reuters

Subediting: Y.Yasser