European markets opened higher on Monday after U.S. President Donald Trump hinted at tariff “flexibility.”
The pan-European Stoxx 600 was 0.5% higher shortly after the opening bell, with Germany’s DAX up 1.05%, France’s CAC up 0.65%, and the U.K.’s FTSE 100 0.49% higher.
Traders will be keeping an eye on preliminary purchasing managers’ index data from the U.K., France, Germany and the euro zone to get a gauge of business activity in the region’s manufacturing and services sectors.
The travel and leisure sector was up 0.8% after London’s Heathrow Airport reopened on Saturday following a power outage caused by a fire at a nearby electrical substation that disrupted Friday service. British Airways owner IAG was up 1% in early trading.
Overnight, Asia-Pacific markets were trading mostly higher Monday, but investors in the region are looking ahead to U.S. President Donald Trump’s April 2 tariff deadline.
Meanwhile, U.S. stock futures were higher, signaling that equities could extend their recent gains.
Last Friday, the three major U.S. averages closed higher, having rallied after Trump told reporters that there could potentially be “flexibility” for his reciprocal tariff plan. The president did stop short of suggesting that there could be some tariff exemptions, however, as he did similarly for automakers earlier in March.
On Sunday, the Wall Street Journal reported the tariffs are expected to be narrower in scope and will likely exclude some industry-specific duties, citing an administration official.
— CNBC’s Brian Evans contributed to this report.
