Tech boosts EU futures as tariff relief and earnings fuel optimism
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European equity markets are set to open on a stronger footing as renewed strength in technology stocks and early earnings momentum support risk appetite. EuroSTOXX50 and FTSE futures are both trading up between 1.6% and 2.4%, following gains in US indices on Friday and an upbeat tone in pre-market activity on Monday. Nasdaq futures have added 1.7%, reflecting sustained rotation into high-growth names after the White House clarified that smartphones and PCs imported from China will be temporarily exempt from punitive tariffs.
The policy shift has triggered a sharp rebound in key tech stocks. In early Frankfurt trading, Apple (AAPL) is up over 6%, while Nvidia (NVDA) gains 3.12%, and ASML holds flat. The relief stems from President Trump’s signal that while exclusions are currently in place, tariffs could still be imposed in the near future—adding a degree of temporal uncertainty that investors are, for now, willing to discount in favor of more favorable near-term positioning.
The rebound is also underpinned by dovish comments from the Federal Reserve, which helped stabilize Wall Street last week, and by optimism surrounding the start of the earnings season. Big US banks are opening the reporting cycle, and in Europe, attention turns to LVMH (MC), which is due to release its quarterly results after the close. The luxury conglomerate’s performance is closely watched as a bellwether for discretionary consumer demand, particularly in China and North America.
In corporate news, M&A activity has provided mixed signals. UK energy services firm Wood Group (WG.) confirmed it received a conditional takeover proposal from Dubai-based Sidara. Meanwhile, German steelmaker Salzgitter (SZG) announced the termination of talks with a consortium regarding a potential acquisition. In the financial sector, BNP Paribas (BNP) revised downward its return-on-capital projections related to the acquisition of AXA’s asset management business, citing evolving market conditions.
Overall, the market is poised to open higher on renewed tech momentum and benign macro signals. However, the underlying volatility linked to tariff policy ambiguity and earnings variability suggests that positioning should remain agile. Key variables to monitor include updates on US-China trade dynamics, forward guidance from large-cap earnings reports, and any revisions to monetary policy expectations in the coming sessions.
The policy shift has triggered a sharp rebound in key tech stocks. In early Frankfurt trading, Apple (AAPL) is up over 6%, while Nvidia (NVDA) gains 3.12%, and ASML holds flat. The relief stems from President Trump’s signal that while exclusions are currently in place, tariffs could still be imposed in the near future—adding a degree of temporal uncertainty that investors are, for now, willing to discount in favor of more favorable near-term positioning.
The rebound is also underpinned by dovish comments from the Federal Reserve, which helped stabilize Wall Street last week, and by optimism surrounding the start of the earnings season. Big US banks are opening the reporting cycle, and in Europe, attention turns to LVMH (MC), which is due to release its quarterly results after the close. The luxury conglomerate’s performance is closely watched as a bellwether for discretionary consumer demand, particularly in China and North America.
In corporate news, M&A activity has provided mixed signals. UK energy services firm Wood Group (WG.) confirmed it received a conditional takeover proposal from Dubai-based Sidara. Meanwhile, German steelmaker Salzgitter (SZG) announced the termination of talks with a consortium regarding a potential acquisition. In the financial sector, BNP Paribas (BNP) revised downward its return-on-capital projections related to the acquisition of AXA’s asset management business, citing evolving market conditions.
Overall, the market is poised to open higher on renewed tech momentum and benign macro signals. However, the underlying volatility linked to tariff policy ambiguity and earnings variability suggests that positioning should remain agile. Key variables to monitor include updates on US-China trade dynamics, forward guidance from large-cap earnings reports, and any revisions to monetary policy expectations in the coming sessions.