European stocks are trading positively amid optimism that trade tensions between the U.S. and China may ease.
Conciliatory comments from U.S. officials regarding the trade dispute with China have reduced risk perception in global markets, supporting gains in equity markets.
As of 10:30 AM, the Stoxx Europe 600 index was up 0.6% at 570 points, Germany’s DAX 40 rose 0.9% to 24,073 points, and the UK’s FTSE 100 gained 0.4% to 9,392 points.
In other European markets, Italy’s FTSE MIB 30 increased 1.1% to 42,222 points, Spain’s IBEX 35 rose 1% to 15,773 points, and France’s CAC 40 gained 0.6% to 8,219 points.
Last week, concerns over the U.S. banking sector led to sharp declines in regional bank stocks. In the new week, a recovery trend is emerging in the banking sector.
Meanwhile, international credit rating agency Standard & Poor’s (S&P) downgraded France’s credit rating to “A+/A-1” while keeping the outlook stable.
S&P emphasized that, despite the 2026 draft budget being presented to parliament, uncertainty surrounding France’s public finances remains high. The statement also noted that the general government budget deficit for this year is expected to be 5.4% of France’s GDP, and that without significant additional deficit-reducing measures, budget consolidation may proceed more slowly than previously anticipated.
Commenting on the rating, France’s Minister of Economy and Finance Roland Lescure described it as “a call for prudence and responsibility.” Analysts noted that today, investors will be focusing on the current account balance data for the Eurozone.
