European stocks ended sharply higher on Monday after the US postponed hefty tariffs on the EU, restoring confidence in trade talks. The Eurozone's STOXX 50 climbed 1.30% to 5 397 and the broader STOXX 600 rose 1% to 550. US President Donald Trump stated that the 50% tariffs previously flagged for June would now take effect in July, signalling optimism about reaching an agreement with the EU. As a result, sectors with significant exposure to US consumers outperformed, rebounding from Friday’s decline. Stellantis, Volkswagen, BMW, and Mercedes-Benz gained between 2% and 5%. Meanwhile, Siemens advanced 3% and outside the eurozone, Novo Nordisk rose by 4%.

In Asia, Japan’s Nikkei advanced 1% to 37 531, supported by the tariff delay and a weakening yen that lifted exporter stocks. Meanwhile, Hong Kong’s Hang Seng dropped 1.40% to 23 282 as tech, consumer and financial shares slid following President Trump’s threat to impose a 25% tariff on non-US-made iPhones and possibly Samsung products. In response to escalating US trade measures, China and the European Union are strengthening cooperation, with trade officials set to meet early next month at a WTO gathering in Paris.  

South Africa’s rand edged down 0.20% to R17.86/$ ahead of the South African Reserve Bank’s interest rate decision on Thursday. Still, the JSE gained ground on upbeat expectations tied to the upcoming policy announcement.

US stock futures rose after President Donald Trump announced a delay to the planned tariffs, following a constructive call with European Commission President Ursula von der Leyen. She confirmed the exchange, noting that more time is needed for negotiations. The US Dollar Index (DXY) declined after the announcement, falling below 99 to its lowest level in over a month as investor sentiment improved. US stock markets, including the New York Stock Exchange and Nasdaq, were closed on Monday for a federal holiday. However, equity futures remained active and traded higher.

Crude oil prices also benefited, with WTI rising to around $61.70 a barrel amid fading fears of a trade war that could hit energy demand and global growth.