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London — European equity markets opened higher on Monday, signaling cautious optimism among investors despite renewed trade frictions between the United States and China. The pan-European Stoxx 600 climbed 0.3% shortly after 8 a.m. local time (3 a.m. ET).

National indices also posted gains at the open, with Germany’s DAX rising 0.5%, France’s CAC 40 up 0.6%, Italy’s FTSE MIB advancing 0.5%, and the U.K.’s FTSE 100 gaining 0.1%. The positive start follows a disappointing close last week when markets reacted to U.S. President Donald Trump’s threat of new tariffs on Chinese imports.

Trump’s warning came in response to China’s recently imposed export controls on rare earth minerals, a sector in which China dominates roughly 70% of global supply. These minerals are critical components for high-tech industries, including automotive, defense, and semiconductor manufacturing.

While Trump initially indicated the potential for additional 100% tariffs on Chinese goods, he later tempered the tone, suggesting on his Truth Social platform that “trade relations with China will all be fine,” providing some relief to investors.

China, meanwhile, maintained a firm stance, stating it is “not afraid” of a trade war and accusing the U.S. of applying a “double standard.” This renewed rhetoric contributed to a cautious sell-off in Asia-Pacific markets overnight, though U.S. stock futures rebounded Sunday evening following Trump’s reassurances.

Earnings and Economic Calendar in Focus

Monday offers a relatively quiet start in terms of corporate earnings and economic data, but this week marks the beginning of Europe’s third-quarter earnings season. Key releases include tech giant ASML, luxury powerhouse LVMH, and global food leader Nestle. Analysts will be closely monitoring performance trends in technology, consumer goods, and manufacturing sectors, which are sensitive to global trade developments.

Investors are also keeping a close eye on the International Monetary Fund (IMF) and World Bank annual meetings in Washington, where discussions on global economic growth, supply chain resilience, and financial stability could influence market sentiment.

Despite the potential risks from U.S.-China trade disputes, the positive European opening reflects investors’ focus on corporate fundamentals and broader economic indicators, signaling a measured approach to volatility in global markets.