European Shares Rise Amid Energy Stock Surge and Trade War Concerns

European shares experienced a slight rise on Monday, buoyed by increasing energy stocks despite looming trade war fears following President Trump's tariff announcements on steel and aluminium imports. The STOXX 600 index recorded gains, influenced by sectors like oil and gas, while real estate shares benefited from lower bond yields.

European shares edged higher on Monday, driven primarily by rising energy stocks despite mounting anxieties over a potential trade war. This comes in the wake of President Donald Trump's announcement of impending tariffs on steel and aluminium imports to the United States.

The pan-European STOXX 600 index rose by 0.3% as of 0810 GMT. This lift follows the benchmark's accomplishment of a seventh consecutive weekly gain last Friday. Trump has indicated he will declare a new 25% tariff on all steel and aluminium imports on Monday, with further reciprocal tariffs expected to be disclosed early in the week.

Germany's 10-year bond yield, serving as the euro zone bloc's benchmark, fell to 2.37% following the tariff declarations. Interest rate sensitive real estate shares witnessed a 0.9% uptick, while the oil and gas sector emerged as the day's top performer, ascending by 1.4%. BP notably soared by 6.4% after activist investor Elliott Investment Management acquired a stake in the company. However, basic resources dropped 0.4% due to Trump's tariff threats.