European Stocks Rebound: Banking Surge Offsets Swiss Tariff Trouble

European shares rose on Monday, rebounding from six-week lows as banking stocks surged. A new 39% U.S. tariff on Swiss goods, however, weighed heavily on Swiss stocks. Zurich's SMI index slipped as Switzerland faced potential job losses. U.S. tariffs sparked concerns about inflation and slower economic growth.

European markets experienced a positive turnaround on Monday, recovering from recent six-week lows as banking shares made impressive gains. This rise in the pan-European STOXX 600 index contrasted with Swiss shares, which suffered after the U.S. imposed a steep 39% tariff on Swiss goods.

While Germany's DAX, France's CAC 40, and Britain's FTSE 100 all observed significant increases, Zurich's SMI index slightly dipped by 0.2%. The heavy tariff hit sent shockwaves through Switzerland, with experts cautioning about the potential impact on jobs.

Banks emerged as a silver lining, with British lenders witnessing a robust rally post a pivotal court ruling. Swiss officials aim to negotiate better trade terms with the U.S., seeking to mitigate the fallout from the tariffs, scheduled to commence on Thursday.

(With inputs from agencies.)