European Shares Surge Amid U.S.-China Trade War Easing

European markets climbed on Friday as investors noted potential progress in the U.S.-China trade conflict. The pan-European STOXX 600 index rose 0.3%, buoyed by hopes of tariff exemptions and improved economic interactions. U.S. President Trump's moderated stance also alleviated concerns, fostering optimism for future trade deals.

European shares experienced an uptick on Friday as hopes emerged for a potential de-escalation in the long-standing U.S.-China trade conflict. This optimism was bolstered by positive quarterly earnings from several key companies. Notably, China is considering exempting certain U.S. imports from its hefty 125% tariffs, sparking speculation that a resolution might be on the horizon.

The pan-European STOXX 600 index saw a 0.3% increase by 0920 GMT, marking its second consecutive week of gains. Regional indexes across Germany, France, Spain, and the UK also moved upwards. Meanwhile, softened rhetoric from U.S. President Donald Trump helped stabilize market sentiments, although formal trade agreements are still pending.

Despite a 90-day reprieve from some tariffs, many elements remain unsettled, as highlighted by Richard Flax of Moneyfarm. Nevertheless, specific sectors, such as European defense and construction stocks, enjoyed notable gains. Companies like Safran and Mapfre reported stronger-than-expected revenues, while others like Kemira faced challenges.

(With inputs from agencies.)