European Stocks Surge After US-China Tariff Reduction Agreement; Maersk Shares Soar 12%

European stock markets opened the new trading week on a positive note following the announcement that the US and China had agreed to reduce tariffs, signaling a potential easing of trade tensions between the two largest economies in the world, CNBC reports.

By 2:37 p.m. in London, the Stoxx Europe 600 index had risen by 1%, with the UK’s FTSE 100 up by 0.4% and France’s CAC 40 seeing a significant increase of 1.45%. However, Germany’s DAX index lost some of its earlier gains and was trading 0.1% lower. The announcement of the tariff reduction came after US Treasury Secretary Scott Bessent referred to recent talks with China as “very productive,” adding optimism to market sentiment.

The deal to suspend most tariffs for 90 days represents a thaw in the ongoing trade dispute between the US and China, which had previously weighed heavily on global markets. As a result of the White House’s announcement, US stock futures saw sharp gains. Nasdaq futures indicated a 3.8% increase, while S&P 500 futures were up by 2.8%, and Dow futures surged by nearly 900 points, or 2.1%. When the US stock market opened, major indices reflected the positive sentiment, with the Dow Jones Industrial Average rising by 975 points, or 2.3%, the Nasdaq Composite increasing by 3.7%, and the S&P 500 adding 2.7%.

In Europe, the Stoxx Pharmaceuticals and Biotechnology index was among the worst-performing sectors, dropping by 2.75% by 1:54 p.m. in London. The decline came after US President Donald Trump announced an executive order to slash prescription drug prices, which could affect pharmaceutical companies worldwide. Stocks in major pharmaceutical companies such as Novo Nordisk, GSK, AstraZeneca, and Roche saw declines following the news.

Meanwhile, Maersk, the Danish shipping giant, experienced a significant 12% jump in its stock price, reflecting investor optimism driven by the US-China tariff agreement. Maersk’s shares had previously fallen by around 4.6% earlier in the year, but the news that the tariff dispute might ease has provided a boost to the company, which is highly sensitive to global trade dynamics.

Other companies within the Stoxx Europe 600 also saw notable gains. Shares of Danish electronics manufacturer GN Store Nord, German footwear maker Puma, French building materials firm Arkema, and Swiss mining giant Glencore rose by more than 5%, further highlighting the positive reaction to the trade deal.