European Stocks Waver as U.S.-China Trade Talks Heat Up in London

(MENAFN) European markets closed mixed on Tuesday as investors closely monitor ongoing trade negotiations between the US and China.

The pan-European Stoxx 600 edged down by 0.02%, slipping 0.12 points to finish the day at 553.12.

Germany’s DAX 40 experienced a sharper decline, falling 0.77% to 23,987.56 points, while Italy’s FTSE MIB 30 lost 0.63%, ending at 40,207.57 points.

In contrast, the UK’s FTSE 100 rose 0.24%, reaching 8,853.08 points, and France’s CAC 40 added 0.17%, closing at 7,804.33.

Tuesday’s strongest sectors were autos and oil and gas, each advancing roughly 1.8%. This rally likely reflects optimism that the negotiations will break the deadlock on tariffs between the two largest economies, potentially paving the way for expanded agreements.

The discussions began Tuesday morning at Lancaster House in London and extended into the afternoon on their second day.

Representing the US delegation, Treasury Secretary Scott Bessent described the talks as "well," while Commerce Secretary Howard Lutnick labeled them "productive."

Key issues on the table include China’s export limits on rare earth materials to the US, Washington’s export controls on high-tech products bound for China, and ongoing tariff disputes.

This round follows a recent phone call between US President Donald Trump and Chinese President Xi Jinping, which Trump said "resulted in a very positive conclusion for both countries."

Both parties are looking to build upon the May 12 Geneva agreement, where they agreed to a 90-day pause on most tariffs and discussed rolling back recent tariff hikes that followed Trump’s April announcement targeting US trading partners.

Despite the talks, tensions remain high, with both sides recently accusing each other of violating the agreement.

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