European markets trade higher as EU vote provides relief

The pan-European Stoxx 600 index rose 0.2% in morning trade, with most sectors and major bourses in positive territory.

Looking at individual stocks, Umicore rose toward the top of the European benchmark after announcing the acquisition of cobalt refinery in Finland. The company’s share price rose 2% in early trade.

In corporate news, Scandinavian Airlines reported heavy losses in its interim second-quarter report. The firm said its results were hit by a pilot strike and rising jet fuel prices. Shares fell nearly 4% shortly after the opening bell.

EU election results

Investors in Europe continued to digest results from the EU Parliament elections, which concluded Sunday. Results showed pro-EU parties still managed to hold onto a majority of seats, albeit with Euroskeptic and nationalist parties also gaining momentum.

Experts saw the vote as largely positive, as an uptick in support for Europhile parties like the Liberals and Parties means the European project may not be under threat. The rise in support for populists was less detrimental than previously feared, analysts said.

Meanwhile, developments in global trade were also in focus, as President Donald Trump concluded a state visit to Japan. The U.S. leader on Monday said he saw a trade with Japan as likely and hoped to announce more on trade talks with the country soon.

The same could not be said for China, however, as Trump said his administration was “not ready” to make a trade deal with Beijing. Both sides have slapped tariffs on billions of dollars’ worth of each other’s imports, while talks between the two over resolving their dispute broke down earlier this month.