Trump Extends Trade Truce With EU: Stocks Rise as Calm Restored

A diplomatic breakthrough averts potential trade war escalation. Trump and von der Leyen agreed to extend the truce on European tariffs, providing a much-needed respite for financial markets. This delay, granting Europe five more weeks to reach an agreement with the US, allowed European stock markets to rebound. The CAC 40 rose 1.01% as investors breathed a sigh of relief following the previous week’s volatile market jitters triggered by Trump’s tariff threat.