DE40: European stocks rise on better manufacturing outlook and Trump's flexibility remarks.

• Gains return to Europe on suggested tariff flexibility

• German manufacturing output increases for the first time in almost 2 years

• SAP surpasses Novo Nordisk as Europe’s most valuable public company

As the upcoming April 2 deadline for reciprocal tariffs is becoming less and less feared due to Trump’s flexibility remarks, the growing risk appetite sends European markets up on Monday. At the moment, German DAX adds 0,35%, French CAC40 is up 0,15%, while British FTSE 100 gains 0,1%.

Some insights from this month's PMIs for Eurozone economies also contribute to sustained optimism in today’s trading. The German Manufacturing Output Index has risen above the expectations to its 34-month high (50.7), entering an expansion territory for the first time in almost two years.

Volatility on European markets today. Source: xStation5

DE40 (H1)

Following recent corrections, the contracts for German DAX opened bullishly on generally improving market sentiment, inspired by the recent suggestions made by Donald Trump. DE40 experienced high volatility at the publication of March PMIs in the Eurozone and is currently trading where it opened on Friday, prior to declines. The index bounced back from the 24-period EMA (light purple), suggesting a potential test of the recent ATH (~23 500) coming in the future. On the other hand, breaking below EMA120 (dark purple) might herald a comeback to the frequently tested support around 22 300.

Source: xStation5

Company news:

• Bayer AG's (BAYN.DE) shares fell 7% after a Georgia jury ordered the company to pay nearly $2.1 billion over claims its Roundup weedkiller caused cancer. This marks another setback in ongoing litigation, which has already cost Bayer around $10 billion. The company plans to appeal the decision.

• RWE AG (RWE.DE) has been urged by Elliott Investment Management to increase share buybacks after acquiring a nearly 5% stake in the company. The activist investor criticized RWE for lacking clarity on shareholder returns and called for more significant buybacks. RWE has been reducing green investments amid risks in the US. RWE’s shares are up 2.2%.

• SAP (SAP.DE) has surpassed Novo Nordisk to become Europe’s most valuable public company, with shares rising 40% over the past year. The German software giant’s growth is driven by its shift to cloud services and AI, while Novo Nordisk struggles with disappointing drug trials. SAP’s market value reached €312 billion.

• Stellantis (STLAM.IT) is offering voluntary buyouts to some workers at its US factories in Michigan, Ohio, and Illinois. The buyouts include termination and retirement incentive packages, part of a review to improve efficiency and maintain competitiveness. Employees have until May 8 to respond to the offer. The shares are up 0.8%.