European Stocks Edge Higher Despite Trade Uncertainty

European stock markets opened on a positive note Monday, showing resilience despite fresh U.S. trade tariffs.

• DAX (Germany): Up 0.3%
• CAC 40 (France): Up 0.1%
• FTSE 100 (UK): Up 0.1%

Key Market Drivers:

1. New U.S. Tariffs and Retaliation Risks
   • President Trump announced 25% tariffs on all steel and aluminum imports, raising concerns over global trade tensions.
   • China retaliated with tariffs on U.S. oil, LNG, and coal, adding to market uncertainty.
   • The EU is considering countermeasures, with German Chancellor Scholz signaling readiness to respond.
2. European Markets Show Strength
   • Despite trade tensions, European stocks have outperformed Wall Street in early 2025.
   • The STOXX 600 posted its best six-week performance since 2015, driven by:
     • Cheap valuations
     • Earnings growth expectations
     • Hopes for European Central Bank (ECB) rate cuts
     • Potential German fiscal easing
   • European earnings are forecast to grow 7.9% in 2025, a sharp rebound from 1% in 2024 and a 3.9% decline in 2023.
3. Corporate News: Nokia Appoints New CEO
   • Pekka Lundmark steps down as Nokia’s CEO.
   • Justin Hotard, Intel’s Executive VP of Data Center & AI Group, will take over on April 1.

Market Outlook:

While trade risks loom, optimism in European equities remains intact as investors bet on earnings growth and monetary easing. However, retaliatory trade actions from China and the EU could trigger volatility in the coming weeks.