European Stocks Rise as Trump Delays EU Tariffs; Zealand Pharma Soars

European Stocks Rise as Trump Delays EU Tariffs; Zealand Pharma Soars

European stocks experienced gains on Monday following President Trump's decision to postpone imposing 50% tariffs on goods from the European Union.

Market Performance

The pan-European Stoxx 600 index closed with a 1% increase, showing positive performance across all sectors. France's CAC 40 rose by 1.2%, and Germany's DAX saw a 1.6% increase. Markets in the U.K. were closed due to a public holiday.

Auto Sector Rebound

The European auto sector rebounded, increasing by 1.7% after a 3% loss in the previous session. This sector is particularly vulnerable to potential U.S. tariffs, as vehicles and machinery constitute the EU's primary exports to the United States. Prominent German automakers such as BMW and Mercedes-Benz saw gains of 2%, while Volkswagen rose by 2.6%.

Zealand Pharma's Surge

Zealand Pharma led the Stoxx 600, with shares climbing by 10%. This surge followed Cantor Fitzgerald's decision to maintain an overweight rating on the stock. Analyst Prakhar Agrawal noted the stock's undervaluation relative to upcoming milestones for petrelintide and the significant opportunity for amylin analogs in obesity treatment.

Tariff Delay Details

Trump initially proposed the tariffs on Friday, citing difficulties in trade negotiations with the EU. However, he later agreed to delay them until July 9 after a call with EU Commission President Ursula von der Leyen. Von der Leyen expressed the EU's readiness to advance talks swiftly.

Global Market Overview

Asian markets showed mixed performance, with gains in Japan and South Korea offset by losses in China and Hong Kong. U.S. markets were closed for Memorial Day. Last Friday, Wall Street experienced a sell-off following Trump's tariff threat and concerns surrounding tech giant Apple.