DE40: Indices open in the green after Trump extends deadline on EU tariffs

• European automaker shares surged after US President Donald Trump extended his deadline for imposing 50% tariffs on EU goods to July 9

• Airbus shares gained ground following VietJet Aviation's announcement that it doubled its widebody aircraft order

European markets staged a strong recovery on Monday, with widespread gains across the region as investors welcomed the reprieve from US tariff threats and positive developments in key sectors. The pan-European EU50 index surged 1.43% to 5,405.6, while Germany's DE40 jumped 1.70% to 24,050.3, reflecting renewed optimism following President Trump's decision to extend the EU tariff deadline to July 9.

The rally was broad-based, with Austria's AUT20 leading gains with a 1.89% surge to 4,370, while the Netherlands' NED25 climbed 1.08% to 929.25. France's FRA40 advanced 1.43% to 7,813.4, and Italy's ITA40 rose 1.28% to 40,010, as European automaker stocks rallied on the tariff news with Mercedes-Benz, BMW, Volkswagen, and Stellantis all posting solid gains.

Switzerland's SUI20 added 0.70% to 12,301, while Spain's SPA35 continued its positive momentum with a 0.86% gain to 14,254. Poland's W20 extended gains with a 1.80% jump to 2,769.6.

Notably, the VSTOXX volatility index plunged 7.07% to 19.73, signaling reduced market anxiety as the immediate tariff threat was postponed, though it remains elevated compared to recent lows, suggesting investors are still cautious about the ongoing US-EU trade negotiations.

Volatility is currently observed in the broader European market. Source: xStation

The German DE40 Index is retesting its previous high after making ATH yesterday, yet it remains above the 23.6% Fibonacci retracement level and the 50-day SMA—both acting as key support zones. Bulls will look to maintain momentum above recent highs to confirm the breakout, while bears may attempt to drive the index below those levels, with the 50-day SMA as a near-term target. The RSI is easing just below overbought territory, indicating a potential cooldown in bullish momentum. Meanwhile, the MACD is beginning to narrow, signaling caution as buying pressure may be losing steam. Source: xStation

Market News

• European automaker shares surged after US President Donald Trump extended his deadline for imposing 50% tariffs on EU goods to July 9, providing relief to the sector amid ongoing trade negotiations; Mercedes-Benz gained as much as 2.3%, BMW rose 2.3%, Volkswagen climbed 2%, Stellantis jumped 3.3%, and Renault advanced 1.1%, while the Stoxx 600 Autos and Parts Index increased 1.1% as investors welcomed the reprieve from what would have affected $321 billion in US-EU trade.

• SAP shares moved modestly as BlackRock reduced its total voting rights position to 6.61% from 6.68%, according to a May 26 filing, while separately the German software giant announced a partnership with Capgemini and French AI developer Mistral AI to offer generative AI solutions for regulated industries, leveraging SAP's Business Technology Platform to develop a library of more than 50 prebuilt AI use cases for streamlining business operations.

• Airbus shares gained ground following VietJet Aviation's announcement that it doubled its widebody aircraft order, purchasing an additional 20 A330-900neo jets worth $7.5 billion at list prices during French President Emmanuel Macron's visit to Vietnam; the deal brings VietJet's Airbus backlog to nearly 140 planes as the Vietnamese carrier expands its long-haul capabilities, though the airline faces financial pressures after missing a court-ordered $60.5 million payment to creditor FitzWalter Capital.

• Asian EV stocks declined sharply after Chinese electric vehicle giant BYD cut prices by as much as 34% last week, intensifying price competition in the sector and triggering broad selloffs among rival automakers across the region as investors worried about margin compression and market share battles in the world's largest EV market.

Other news coming from individual DAX index companies. Source: Bloomberg Financial LP