STOXX 600 pares losses as Europe starts week with solid gains

European stock markets started the new week on a positive note, with the pan-European STOXX 600 index up 1.6% in early trading around 07:09 GMT. That followed three straight weeks of declines, driven by global tariff turmoil.

Tariff storms and a pullback from records

Global markets are in turmoil, with recent tariff debates shaking up investors. As a result, the STOXX 600 index has lost about 12% from its all-time closing high. The pressure is felt across the board, from manufacturing companies to tech giants.

European chipmakers are steadily gaining

The rise is particularly noticeable among European semiconductor makers. Companies with high exposure to the U.S. market, such as ASM International, BE Semiconductor, Infineon and ASML, were up around 2 percent by 07:20 GMT. These firms play a key role in the global technology chain, supplying components for smartphones, laptops and other consumer electronics.

ASML gains from tariff exemption

ASML, a chipmaker, is one of the winners, having been exempted from the 10 percent U.S. tariffs imposed by the Trump administration. That has strengthened the firm's position in the European market and supported overall growth in the sector.

US Tech Raises Heads in Frankfurt

Amid optimism in Europe, US tech giants also gained weight on the Frankfurt Stock Exchange. Apple jumped more than 6%, Nvidia 3%, and Dell Technologies soared 6.3%. These figures reflect a general increase in investor appetite for the tech sector despite global turbulence.

Trump Prepares New Blow: Uncertainty Remains

However, the joy may be short-lived. On Sunday, Donald Trump hinted that he could impose additional tariffs on semiconductors and the entire supply chain as early as next week. The announcement heightened tensions and once again cast doubt on the prospects for stability in the tech sector.

Tech Takes the Lead: Logitech and SAP Among the Gainers

European tech sector shows a confident recovery. The region's tech index jumped 2.8%, posting one of its biggest daily gains in recent memory. Peripheral giant Logitech added nearly 5%, while enterprise software giants SAP and Dassault Systemes rose 2%, adding to the industry's positive momentum.

US adds fuel to fire: Nasdaq futures point to gains

Markets in the US also started the day on a positive note, with Nasdaq futures posting a 1.6% gain in early European trading. That gave traders confidence, especially as the European tech index and banking sector rose 2.6%.

Banks not far behind: financial sector revives

Financial companies in Europe started the new week on a strong note, with the banking index jumping 2.6%, reflecting improved sentiment ahead of a key European Central Bank meeting. Investors are betting on a rate cut that could boost liquidity and boost the eurozone economy.

Regional indices in the green

Almost all key European indices were in the green. Germany's DAX, sensitive to global trade, added 1.7%, while France's CAC 40, Spain's IBEX and Britain's FTSE 100 rose between 1.4% and 1.7%. This signals broad market support amid ongoing geopolitical tensions.

ECB prepares for decisive move

Investors' attention will be focused on the European Central Bank on Thursday. Markets are almost unanimously forecasting a 25 basis point cut in the key rate. However, the regulator's rhetoric will be much more important - analysts are waiting to see how concerned the ECB is about the possible impact of trade barriers on economic growth in the region.

Smartphones are still out of sight, but for how long?

Despite the current respite, the situation is far from clear. The Trump administration has already delayed tariffs on smartphones and certain electronics, but that may only be a temporary solution. The White House is actively studying the vulnerabilities of the global supply chain — and it's possible that these products will get their own tariff category once the analysis is complete.

Chaos is the new normal: markets in disarray

Amid growing uncertainty, global markets continue to teeter on the edge. It is difficult to imagine how CEOs can make strategic decisions in such an atmosphere of instability. It is this sense of unease that seems to have put a brake on further growth in Wall Street futures.

The S&P 500 index added a modest 0.8% on Monday, while the tech-heavy Nasdaq rose slightly more confidently, by 1.2%. At the same time, Apple shares, according to analysts, could become a short-term beneficiary of current events.

Europe on the rise: what are investors betting on?

European stock futures outperformed their American counterparts, and this may be due to several reasons. On the one hand, there is hope that President Trump will limit himself to partial introduction of tariffs. On the other hand, there is a growing belief that the "exceptionalism" of the United States is losing its power, and investors are looking for alternative points of support. Europe is starting to look like a more stable haven against this backdrop.

The dollar is losing its aura of immunity

There is a clear shift in the currency markets. The dollar has weakened significantly, falling below 143.00 against the yen, continuing a sharp decline similar to what happened earlier with the Swiss franc, which lost 5% in a week. The euro is also showing no strength, falling back to $1.1400.

But it is the so-called "risk currencies" – the Australian and New Zealand dollars – that have attracted the most attention. Their strengthening is a clear signal that the US dollar is losing its status as a "safe haven" in the eyes of investors.

Japan on the brink of a difficult dialogue with the US

Meanwhile, preparations are underway behind the scenes in Tokyo for a new round of trade talks with Washington. According to sources close to the talks, the exchange rate issue is likely to be the focus of attention. The American side may insist on a stronger yen to offset the trade imbalance and maintain balance in the face of growing currency pressure.

Inflation sentiment under the microscope: New York takes the floor

Economists and investors are eagerly awaiting the publication of a fresh survey from the New York Federal Reserve, which should shed light on the inflation expectations of Americans. The report will be released on Monday and may well show a similar jump that was previously recorded by the University of Michigan Consumer Sentiment Index. A sharp increase in inflation expectations could increase pressure on the Federal Reserve, raising rates for future decisions.

Retailers rush before tariffs: sales may surprise

Another important indicator will be published on Wednesday - data on retail sales for March. According to preliminary estimates, the report may be stronger than usual. The reason is simple: consumers began to stock up on cars and household appliances in advance to avoid potential price increases after the introduction of new tariffs. This kind of "trading anticipation" has led to temporary surges in consumer activity before.

Powell on Stage: All Eyes on Chicago

Also on Wednesday, Federal Reserve Chairman Jerome Powell will address the Economic Club of Chicago. Of particular interest is not so much his speech as the subsequent question-and-answer session, where participants are expected to show no restraint. Powell will have a chance to outline the regulator's current position and, perhaps, set the tone for possible easing of monetary policy.

Betting on June: Markets Make a Choice

Amid growing economic anxiety and a precarious balance between inflation and slowing growth, market participants are increasingly betting on a rate cut. The probability of a cut in May is currently estimated at about 20%, but by June this figure is rapidly approaching 80%. Futures markets as a whole expect an 80 basis point rate cut by the end of the year, although last week the forecast reached as high as 130 basis points. This reflects the wild swings in expectations in an environment where every signal from the Fed can cause a real storm.