On Monday morning, Western European stock exchanges opened higher. Investor optimism was supported by news of a temporary easing in trade pressure between the United States and the European Union, as well as continued expectations of an imminent interest rate cut by the European Central Bank.

At the same time, market participants are closely watching upcoming inflation data in the eurozone and U.S. employment figures, both of which could significantly influence investor sentiment in the coming days.

Positive momentum at the start of the week

The Stoxx Europe 600 index rose by 0.65% at the open, extending gains seen at the end of last week. National exchanges across the region also showed modest increases:

• FTSE 100 (United Kingdom): +0.78%
• DAX (Germany): +0.86%
• CAC 40 (France): +0.25%
• IBEX 35 (Spain): +0.42%
• FTSE MIB (Italy): +0.33%

This start to the week reflects improved overall sentiment, driven by balanced central bank messaging and easing global trade risks.

Factors supporting the rally

At market open, investors responded positively to several developments that reduced short-term uncertainty and created a more favorable informational backdrop:

• A delay in the introduction of new U.S. import tariffs against the EU until July
• Slowing inflation in major European economies
• A growing likelihood of an ECB rate cut at its upcoming meeting
• Strengthening corporate shares following sector-specific positive news
• Moderate expectations for upcoming U.S. macroeconomic data

Together, these factors are helping stabilize markets in the near term and support price growth amid reduced volatility.

Investor outlook and next steps

Traders remain cautiously optimistic as they monitor macroeconomic indicators and prepare for a series of key events this week, including:

• The European Central Bank meeting
• The release of preliminary inflation figures for the eurozone in May
• U.S. labor market data for May, which may influence Federal Reserve policy decisions

The outcomes of these events will shape short-term direction for European stock markets and may either reinforce or shift the current upward trend.