European Markets Rise Amid Eased Banking Concerns and U.S.-China Trade Optimism

European shares rose on Monday as fears over the U.S. banking sector subsided and comments from U.S. President Trump eased trade tensions with China. The STOXX 600 index increased by 0.6%, with banks leading the gains. Optimism was fueled by potential tariff reductions and resumed Chinese purchases of soybeans.

European shares gained on Monday as initial concerns over the U.S. banking sector's stability diminished. Fresh remarks from President Donald Trump also eased trade tensions, prompting investors to pursue riskier assets.

The STOXX 600 index rose 0.6% to 569.37 points by 0915 GMT, recovering from a nearly 1% decline on Friday. European banks climbed 0.8%, among the top gainers, following U.S. banks' rebound after regional lenders' quarterly results mitigated credit risk worries.

Optimism grew as Trump suggested he might lower tariffs on China, provided Beijing resumes soybean purchases. "Credit worries are easing, and U.S.-China trade tensions may also decline, boosting European markets today," said Swissquote Bank's Ipek Ozkardeskaya.

(With inputs from agencies.)