Europe midday: Tech and banking stocks provide a boost
By Benjamin Chiou
Date: Monday 14 Apr 2025
(Sharecast News) - Tech and banking stocks were providing a big lift across European markets on Monday as investors reacted to the latest move by the US to exempt certain Chinese products from tariffs, raising hopes that a trade deal between the two powerhouses could eventually be struck.
By 1239 CEST, the pan-European Stoxx 600 was trading 2.3% higher at 498, with markets in Frankfurt up 2.5%, Paris up 2.2% and London up 1.9%.
European markets had slumped to 14-month lows last week as America's seesawing trade policy continued to cause volatile swings across asset classes. The initial launch of reciprocal tariffs on all US trading partners was then followed by a 90-day pause, with the exception of China, which saw import duties hiked to 145%.
However, an announcement over the weekend from the White House of a tariff exemption on Chinese-made smartphones and other consumer electronic products has lifted sentiment somewhat to begin the new trading week. According to Nomura analysts, some 16.3% of all Chinese exports into the US are now exempt from the reciprocal tariffs announced earlier this month.
Nevertheless, Trump stated that "nobody is getting off the hook for unfair trade balances", suggesting that the Chinese tariff reprieve could be short-lived.
"Adding another layer of complexity on to an already complex trade policy may not be that well received by investors, but in the short term there is still likely to be palpable relief, particularly for the likes of Apple and Nvidia," said AJ Bell investment director Russ Mould.
Busy week ahead
Market participants were starting to look ahead to Thursday when the European Central Bank is expected to cut interest rates again amid ongoing tariff-related uncertainty. "We expect another cut to the ECB policy rate this week as the downside risks to growth and inflation grow," said analysts at Citi in a note.
Aside from the ECB, investors will have a wave of key economic data and corporate earnings to contend with during a shortened trading week, with most markets closed on Friday for Easter. These include the latest quarterly figures from US banks, inflation data from the eurozone and UK, US retail sales and business inventories figures, and earnings from heavyweight tech groups TSMC and Netflix.
"All [of these announcements are] unfolding under the shadow of escalating trade tensions", said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. "Every data point will be dissected through the lens of the growing trade war. While earnings will move stocks, it's the forecasts that truly matter now. A potential jump in US retail sales may not signal confidence, but rather reflect consumers front-loading purchases before tariffs bite," Ozkardeskaya said.
Market movers
Tech stocks were the main beneficiaries from the latest tariff newsflow, with Soitec, Logitech and BE Semiconductor Industries among the best performers on the Stoxx 600.
Banking stocks were also on the rise across the region, including HSBC and Barclays in London, Commerzbank and Deutsche Bank in Frankfurt, and Credit Agricole and Societe Generale in Paris.
Even BNP Paribas rose despite cutting its full-year return on invested capital guidance following its €5.1bn acquisition of AXA's asset management unit. BNP said on Monday that it now expects a return of more than 14% in the third year, down from 18%.
BP was a high riser after a new oil discovery at its Far South prospect in the deepwater Gulf of Mexico, marking a potential boost to its upstream portfolio as the company accelerates exploration efforts under its revised strategic plan.
Belgian insurer Ageas rose after agreeing to buy UK-based digital personal lines insurer Esure from Bain Capital for £1.3bn, increasing its European markets presence and reinforcing its positioning in the UK. The combination of the two will create the third largest UK personal lines platform.
London-listed Ashmore dropped sharply after the emerging markets-focused asset manager reported a 5% drop in assets under management over the first quarter of 2025.
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