European Markets Rise as Trump Delays Tariffs on EU; German Automakers and Oil Stocks Gain

European equity indices opened higher on Monday, buoyed by relief that U.S. President Donald Trump has delayed his proposed 50% tariffs on European Union imports. This move has eased concerns over a potential trade war between two of the world’s largest economies and fueled optimism across European markets.

As of 07:35 GMT, Germany’s DAX index rose 1.4%, while France’s CAC 40 climbed 1%. Both the U.K. and U.S. markets were closed for public holidays.

Trump Delays 50% EU Tariff, Easing Trade Tensions

Trump announced on Friday that he would implement a 50% tariff on EU imports starting June 1, citing frustrations with trade negotiations. However, by Sunday, the president signaled a change of heart, stating on Truth Social that he had agreed to postpone the tariffs until July 9 after discussions with European Commission President Ursula von der Leyen.

Von der Leyen responded positively, posting on X that the EU is ready to proceed with trade talks “swiftly and decisively.”

The tariff postponement lifted investor sentiment, particularly in sectors most exposed to transatlantic trade, including automotive and energy.

German Automakers Rally on Trade Relief

German carmakers—highly sensitive to trade tariffs—led gains in European stocks on Monday. Shares of Mercedes Benz Group AG rose over 1.7%, Bayerische Motoren Werke AG (BMW) gained more than 1.3%, and Volkswagen AG advanced around 1.7%.

Oil Prices Edge Up as Tariff Delay Lifts Market Mood

Crude oil prices ticked higher on Monday, supported by the improved trade outlook. As of 03:28 ET, Brent Oil Futures rose 0.06% to $64.3 per barrel, while West Texas Intermediate (WTI) gained 0.08% to $61.61 per barrel.

However, gains were capped by continued oversupply concerns, with OPEC+ reportedly considering a production hike in July, potentially adding 411,000 barrels per day to global supply.

EVN AG Shines on Strong H1 Results

Austrian utility and environmental services company EVN AG posted robust first-half results for the 2024/25 fiscal year, sending its shares up over 3%. The firm maintained its full-year profit forecast of €400 million to €440 million and confirmed a dividend payout of no less than €0.82 per share. EVN’s diversified portfolio and higher energy consumption supported its growth.

Citi Raises Short-Term Gold Target to $3,500

Amid ongoing tariff uncertainty and geopolitical risks, Citi raised its near-term gold price target to $3,500 per ounce, up from $3,300. The bank expects gold to trade within a range of $3,100 to $3,500, driven by the risk of escalating trade conflicts and strong safe-haven demand.

However, Citi cautioned that gold’s long-term outlook remains less certain, citing potential shifts in economic growth, equity market trends, and Fed policy moves ahead of the U.S. midterm elections. The bank also noted that household gold holdings are at a 50-year high, which could limit further upside.

Citi maintained its short-term targets for platinum at $1,050 and palladium at $900 per ounce.