Europe stocks close higher as Trump tariff exemptions boost sentiment

European stock markets closed higher on Monday after investors parsed news of a U.S. tariff exemption for some tech items.

The pan-European Stoxx 600 index provisionally closed higher by 2.7%, the U.K.’s FTSE 100 ended the day up 2%, Germany’s DAX up by 2.6%, and France’s CAC 40 up by 2.4%.

Oil and gas stocks jumped 3% despite forecasts of weaker oil prices in 2025, while banks rose nearly 3%.

Danish pharmaceutical giant Novo Nordisk rose 3.7% after competitor Pfizer scrapped the development of its experimental daily weight loss pill over a livery injury in one patient.

After the market closed, luxury giant LVMH reported a 3% drop in first-quarter sales of 20.3 billion euros ($23.1 billion), lower than the 21.2 billion euros forecast by LSEG analysts.

U.S. President Donald Trump’s extreme and fast-changing tariff policy has led to one of the most volatile periods on record for global equities.

After a strong start to the year in which it had been outperforming U.S. markets, the Stoxx 600 has fallen more than 8% in April so far, while Wall Street’s S&P 500 has lost 4.43%.

In fresh developments over the weekend, smartphones, computers, and other electronic devices and components were exempted from the U.S. duties — though only temporarily, according to officials. U.S. Customs and Border Protection guidance indicates 20 product categories are exempt from the 125% tariff newly-imposed by Trump on Chinese imports and the 10% baseline tariff on imports from other countries, while a 20% tariff on all Chinese goods remains in effect.