Stock markets mostly rise amid trade talk hopes

LONDON — Stocks mostly rose on Monday as investors welcomed the absence of further trade war escalation over the weekend and as countries seek to temper US President Donald Trump's tariffs.

Investors were also keeping tabs on China after President Xi Jinping and other top leaders last week discussed plans to boost consumption in the world's number two economy.

Markets started Monday on a tepid note after a much-needed positive run-up last week, with eyes on the upcoming earnings season and key economic data.

"A weekend light on drama was just what the doctor ordered for financial markets," said AJ Bell investment director Russ Mould.

Analysts said that market sentiment has calmed since Trump dialled down pressure on Federal Reserve boss Jerome Powell and hinted at progress in trade talks with economic partners.

"This week will be the first for a while where data and earnings will compete with tariff headlines," said Jim Reid, global head of macro research at Deutsche Bank.

Investors will be poring over the outlook statements in a slew of corporate earnings, including from US giants Amazon, Apple, Meta and Microsoft, to assess the impact of tariffs on businesses.

Eyes will also be on the release of several closely-watched US economic indicators which "may either dampen or revive concerns about recession in the world's largest economy," Mould added.

Asian markets enjoyed a largely healthy start after a strong end to last week on Wall Street.

Tokyo rose along with London, Paris and Frankfurt.

But Shanghai edged down while Hong Kong was flat.

In company news, shares in wealth management firm BancaGenerali soared six per cent in Milan after Italian bank Mediobanca announced a takeover bid.

The more positive mood weighed on gold, which hit a record high around $3,500 last week as investors flocked to safe havens.

Traders are hoping governments can hammer out deals with Trump to soften the impact of his sweeping tariffs, with reports last week saying China was considering exempting some US goods from its hefty retaliatory measures.

Beijing has said there are no active negotiations between the economic superpowers and on Monday an official denied Trump's claims to have spoken with Xi by phone.

Japanese media reported that a second round of trade talks in Washington was set for Thursday.

The discussions will be closely watched as a barometer for efforts by other countries seeking tariff relief.

US Treasury Secretary Scott Bessent said a trade "understanding" between South Korea and the United States could be reached by this week.

In Beijing, senior economic planner Zhao Chenxin said China was on the "right side of history" in its gruelling trade war with the United States