European markets closed modestly higher on Monday, recovering from last week’s volatility as investors welcomed signs of easing tensions between the United States and China. Wall Street opened with gains, supported by optimism around corporate earnings and a calmer tone in global trade rhetoric.
European session: cautious rebound after last week’s sell-off
Major European indices ended the day slightly in the green, with the pan-European STOXX 600 climbing around 0.4 % after Friday’s sharp decline. The rebound was led by energy and industrial stocks, as investors responded to a softer stance from Washington on China’s trade policies. In Paris, the CAC 40 rose 0.5 %, supported by a recovery in banking and construction shares, while Frankfurt’s DAX gained 0.3 %. London’s FTSE 100 advanced 0.2 %, with miners and utilities posting moderate gains.
Despite the relief rally, sentiment remained fragile. Market participants continued to weigh political uncertainty in parts of the EU, coupled with persistent concerns over slowing industrial output and high borrowing costs.
US markets: steady opening amid renewed optimism
Trading on Wall Street began on a positive note despite the federal holiday for Columbus Day, with equity markets open but bond trading closed. The S&P 500 opened roughly 1.1 % higher, while the Dow Jones Industrial Average added around 0.8 % and the Nasdaq Composite gained close to 1.3 %.
The upbeat tone followed remarks from former President Donald Trump and Vice President-elect J.D. Vance signalling a more measured approach towards Beijing, easing fears of a renewed tariff conflict. Tech and renewable-energy shares led early gains, with Bloom Energy and Centrus Energy among the top performers.
Global outlook: investors eye corporate earnings and inflation data
Analysts noted that this week’s market direction will depend heavily on upcoming third-quarter earnings reports and key inflation indicators from the US and Europe. Strong corporate results could reinforce confidence that growth remains resilient despite higher interest rates.
However, strategists cautioned that volatility may persist as traders adjust positions ahead of central bank meetings later this month. Currency markets remained stable, with the euro holding near USD 1.09 and oil prices hovering around USD 84 per barrel.
Newshub Editorial in Europe – 13 October 2025
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