PARIS/LONDON/ZURICH (dpa-AFX) – Signs of easing in the customs dispute between the USA and China lifted the EuroStoxx 50 above 5,700 points for the first time on Monday. The leading index of the Eurozone reached a record high of a good 5,707 points and was up 0.56 percent at 5,706 points at midday.
The British FTSE 100 had struggled to climb to another high at the start of trading and was recently barely budging at 9,641 points. In Zurich, the SMI suffered from significant price losses in Sika and Roche shares. The Swiss leading index recently fell by 0.57 percent to 12,496 points.
China and the US have reached a preliminary agreement, Li Chenggang, vice secretary in the Chinese Ministry of Commerce, said after talks with the US side. This must now “go through an internal approval process” on both sides. China initially did not provide any specific information about the contents. US Treasury Secretary Scott Bessent also spoke of positive negotiations in Kuala Lumpur, which are a precursor to the meeting between US President Donald Trump and Chinese President Xi Jinping in South Korea on Thursday.
“Further escalation in the customs dispute appears to have been averted,” wrote strategist Sandro Pannagl from Landesbank Baden-Württemberg. The defusing of (trade) political tensions should – at least in the short term – stabilize the markets and provide more planning security for the coming months.
From an industry perspective, economically sensitive technology stocks were in high demand across Europe. They also followed the positive guidelines from New York, where technology stocks were once again chasing records at the end of the week. In the EuroStoxx, Prosus was clearly ahead with an increase of four percent.
In Zurich, Sika fell to the SMI end with minus three percent. After the construction chemicals and adhesives manufacturer’s business figures presented on Friday, some analysts were now critical of the shares.
Roche’s shares lost 2.5 percent after analysts downgraded them. The pharmaceutical company’s shares had a valuation premium compared to the industry, without justification by corresponding growth, wrote Jefferies expert Michael Leuchten.
Novartis shares fell by a good one percent at the start of the week. The pharmaceutical company announced on Sunday evening that it wanted to buy the US company Avidity Biosciences for $12 billion. This would be the largest takeover in years./la/mis