European Stocks Rise on Easing Trade Tensions and Strong Corporate Earnings

European stocks climbed on Friday, April 25, supported by signs of easing trade tensions between the United States and China, along with stronger-than-expected earnings from major companies, boosting investor confidence.

The Stoxx 600 index rose by 0.5%, heading toward a 2.9% weekly gain — marking its second consecutive week of increases. Major indexes in Germany, France, Spain, and the United Kingdom also recorded gains between 0.2% and 0.9%.

The uptick followed reports that China is considering exempting certain U.S. imports from its 125% tariffs, fueling hopes of de-escalation in the trade war between the world’s two largest economies.

Travel sector stocks led the sectoral gains with a 1.7% increase, followed by automotive and auto parts stocks, which rose 1.4%. Finnish company Stora Enso’s shares jumped 4.3% after reporting first-quarter operating profits that beat market expectations.

In France, aircraft engine maker Safran saw its shares rise 2.9% after posting stronger-than-expected first-quarter revenues and expressing confidence in meeting full-year targets, despite potential tariff impacts being excluded.

These developments came as U.S. President Donald Trump adopted a softer tone regarding the trade dispute with China, contributing to more stable market sentiment this week.

Nevertheless, despite the positive signals, global markets remain cautious due to ongoing trade tensions and uncertainties surrounding future economic policies.