European Stocks Hold Steady as Investors Weigh Trade Optimism and Earnings

European equities opened broadly stable on Monday, as investors balanced cautious optimism over easing U.S.–China tensions with a steady flow of corporate earnings results and major political developments in Asia.

At 03:10 ET (07:10 GMT), the DAX in Germany and the CAC 40 in France each slipped 0.1%, while the FTSE 100 in the U.K. edged 0.3% higher, helped by strength in commodity-linked stocks.

Improved Global Sentiment on U.S.–China Outlook

Markets drew some support from renewed signs of diplomacy between Washington and Beijing.
U.S. President Donald Trump said he expected to reach a “fair trade deal” with Chinese President Xi Jinping at an upcoming meeting during an economic summit in South Korea next week.

While disputes over tariffs, technology, and market access remain unresolved, traders welcomed the shift toward dialogue after months of escalating trade rhetoric that had dampened investor confidence and weighed on global supply chains.

Japan Set for Historic Political Shift

In Asia, sentiment was buoyed by political news from Tokyo.
Sanae Takaichi, leader of Japan’s Liberal Democratic Party (LDP), is poised to become the country’s first female prime minister, succeeding Shigeru Ishiba, who resigned after the party’s recent electoral losses.

Takaichi is viewed as a fiscal dove, expected to expand government spending on infrastructure, industrial growth, and defense — policies that could further stimulate Japan’s economy and potentially support global risk appetite.

Earnings in Focus Across Europe

With few major economic releases on Monday, attention turned to corporate earnings.

• Assa Abloy (ST:ASSAb), the world’s largest lock manufacturer, reported a slightly better-than-expected operating profit for Q3, despite continued weakness in North American residential markets.
• Husqvarna (ST:HUSQa) disappointed investors as uneven demand and soft U.S. sales dragged on results, pushing shares lower.
• Unilever (LON:ULVR) announced it would delay the planned demerger of The Magnum Ice Cream Company due to the ongoing U.S. government shutdown, promising an updated timeline soon.
• L’Oréal (EPA:OREP) was also in focus, set to release quarterly results later in the session following its €4 billion acquisition of Kering’s beauty division.

Across the Atlantic, traders are eyeing upcoming U.S. corporate earnings from Netflix (NASDAQ:NFLX) and Coca-Cola (NYSE:KO) on Tuesday, which could influence sentiment heading into the midweek.