European shares rebound after Friday's selloff, Swiss stocks fall
The pan-European Stoxx 600 index rose 0.9 per cent to 540.60, with most major regional markets, barring Swiss stocks, rebounding from Friday's sharp losses, when worries about tariffs and a weak US jobs report hammered sentiment.
The German DAX climbed 1.4 per cent, France's CAC 40 rose 1.1 per cent and Britain's FTSE 100 added 0.7 per cent.
Zurich's SMI index dipped 0.2 per cent as trading resumed following a long weekend. Switzerland was left stunned on Friday after Trump hit it with one of the highest tariffs in his global trade reset, with industry associations warning that tens of thousands of jobs were at risk.
Swiss luxury watchmakers' shares, including Richemont and Swatch, fell 1.3 per cent and 2.3 per cent, respectively.
'It's understandable why Switzerland is lagging. Companies most exposed to international trade flows appear to be under the greatest pressure. However, a quarter percent decline isn't particularly significant,' said Russ Mould, investment director at AJ Bell.
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'It seems there may still be hopes that a deal will be struck on terms that are, if not favourable, at least less unfavourable than what the White House has imposed so far.'
Switzerland was ready to make a 'more attractive offer' in trade talks with Washington, its government said on Monday.
The duties were scheduled to go into effect on Thursday, giving Switzerland, which counts the US as its top export market for pharmaceuticals, watches, machinery and chocolates, a small window to strike a better deal.
European stocks have moved further away from this year's peak as US tariffs on its key trading partners raise concerns about a resurgence in inflationary pressures and slowing economic growth.
Banks were a bright spot on the day, with shares in British lenders surging after the country's Supreme Court overturned a ruling on motor finance commissions, easing fears among banks about a redress scheme some analysts had warned could run into the tens of billions of pounds.
Lloyds added 9 per cent while Close Brothers surged 24 per cent. Barclays, Bank of Ireland and Santander all gained more than 2 per cent each.
UBS dipped 0.7 per cent after the bank said it would pay US$300 million to resolve US mortgage securities cases related to the misselling of mortgage-linked investments. REUTERS
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