European stocks open high as crypto market holds steady after Trump postponed tariffs
European stocks opened strong on Monday after US President Donald Trump delayed his planned 50% tariffs on goods from the European Union.
According to CNBC, the decision came late Sunday after a call between Trump and European Commission President Ursula von der Leyen, following a Friday threat that had rattled markets across Europe and the US
The Stoxx 600 index jumped 1% just after the open, pulling every sector into positive territory. In early morning trades, France’s CAC 40 rose by 1.3%, and Germany’s DAX was up 1.8%. UK markets remained closed for a public holiday.
The move came after Trump said Friday on Truth Social that the European bloc was “very difficult to deal with” and claimed talks were “going nowhere.” He announced the tariffs would begin June 1, but that plan was dropped two days later.
The new date is now July 9, buying the EU more time. Ursula posted on X that the bloc was “ready to advance talks swiftly and decisively.”
Automakers, crypto react to weekend flip-flop
The most dramatic rebound came from the auto sector, where stocks had taken a beating the session before. Shares of BMW rose 1.4%, Mercedes-Benz gained 1.5%, and Volkswagen matched that with a 1.5% increase. Automakers are especially exposed in this fight, since vehicles and machinery are the EU’s top exports to the US
In crypto, Bitcoin recovered to $110,000, Ethereum held at $2,575, and XRP sat at $2.35. None of the major coins reacted much to the tariff news. The asset class remained calm despite the weekend’s rollercoaster from Trump’s policy whiplash.
Barclays analysts called the 50% tariff a “negotiating tactic” in a note sent Friday. Despite that, US stocks plunged. The S&P 500, Dow Jones, and Nasdaq all ended the week down more than 2%. The pressure was made worse by a surge in Treasury yields, triggered by Trump’s tax proposal, which could add $2.3 trillion to the national deficit.
In Asia, results were mixed. Stocks in Japan and South Korea climbed overnight, while China and Hong Kong dropped. Wall Street remained closed Monday for Memorial Day. The mood? Cautious, but watching every post and delay. Investors now brace for whatever comes next on or before July 9.
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