European Markets Rally on Tariff Exemptions for Electronics

European stocks surged on Monday as investor sentiment improved following the U.S. decision to temporarily exclude smartphones, computers, and other consumer electronics from its latest round of tariffs—many of which are sourced from China.

The pan-European STOXX 600 jumped 2.1% to 497, rebounding strongly after a flat close on Friday. Major regional indices followed suit, with Germany’s DAX rising 2.5%, France’s CAC 40 gaining 2.1%, and the U.K.’s FTSE 100 advancing 1.9%.

Technology stocks led the gains across Europe, driven by relief in the semiconductor and electronics sectors. Shares of Dassault Systèmes, ASM International, Infineon Technologies, ASML Holding, and Logitech all climbed between 3% and 7% as investors cheered the easing of trade tensions between the U.S. and China.

In corporate news, German steelmaker Salzgitter AG fell 3.3% after announcing the end of takeover talks with a consortium of bidders. Meanwhile, France’s Vallourec SA soared 5.3% after revealing it had entered negotiations to sell its welding solutions subsidiary Serimax to Aldebaran Capital Partners for an enterprise value of €79 million.

However, not all sectors shared in the optimism. Asset manager Ashmore Group slumped 6% after reporting disappointing results for the third quarter, weighed down by weaker performance in emerging markets.

China-exposed luxury giant LVMH rose over 1% ahead of its earnings announcement, with investors eyeing signals of continued demand from Chinese consumers amid shifting trade dynamics.

Overall, the rally reflected a broader sense of relief in global markets, fueled by partial tariff exemptions and improving prospects for tech and export-driven industries.