Stock markets have gained across Europe, as investors welcomed signs of a possible thaw in the trade war between the US and China. Germany’s Dax gained 1.2% in the early trades, while France’s Cac 40 was up 1.4% – after both were closed over the May Day bank holiday. The Stoxx 600 index, which tracks big companies across Europe, rose by 0.9%. The FTSE 100 was up 0.9%. The gains appeared to be a reaction to China’s government saying it was evaluating US approaches for trade talks. Reuters reported a statement from the Chinese commerce ministry. “The US has recently taken the initiative on many occasions to convey information to China through relevant parties, saying it hopes to talk with China,” the statement said, adding that Beijing was “evaluating this”. It continued: “Attempting to use talks as a pretext to engage in coercion and extortion would not work.” That came after a state-linked social media account said there was “no harm” in China engaging in talks – even if it also sounded a note of caution. Nevertheless, it comes after US administration officials and Donald Trump himself repeatedly signalled they wanted to cut tariffs. Shell has reported a 28% drop in profits to $5.6bn (£4.2bn) as big oil companies grapple with lower prices. Oil prices have dropped from the heights hit after Russia’s invasion of Ukraine caused a global energy crisis. Shell’s adjusted profits were down from $7.4bn in the first quarter of 2024, or the record first-quarter profits of more than $9.6bn in 2023. However, Shell’s performance this year was still better than analysts’ expectations of $5bn, according to forecasts collected by the company. Brent crude oil futures were trading at $62 a barrel on Friday, compared with more than $130 at the peak of the energy crisis in early 2022. Oil companies are having to contend with Saudi Arabia’s apparent willingness to tolerate low prices in order to defend its market share, as well as Trump’s desire for low energy prices – not to mention the threat of slower global growth or even recession from Trump’s trade war on the world. The agenda • 9am BST: eurozone manufacturing purchasing managers’ index (April; previous 48.6 points; consensus 48.7) • 10am BST: eurozone inflation (April; previous 2.2% annual; consensus 2.1%) • 10am BST: eurozone unemployment (March; previous 6.1% annual; consensus 6.1%) • 1.30pm BST: US non-farm payrolls (April; previous 228,000 jobs; consensus 130,000) We'll be tracking all the main events throughout the day …
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