European Stocks Gain Strongly on Developments in US-China Trade and White House Statements

European stock markets witnessed a significant rise during trading on Friday, June 27, supported by investors' optimism about progress in trade talks between the United States and China, enhancing expectations of possible new agreements before the July deadline to suspend mutual tariffs.

According to available data, the European Stoxx 600 index jumped by 0.6% to reach 540.67 points by 07:07 GMT, marking the first weekly increase in three weeks. Major indices in various European markets also recorded collective gains, indicating improved investor sentiment.

The market received a significant boost from statements by a White House official confirming that Washington and Beijing had reached a preliminary agreement to expedite shipments of rare earth minerals to the United States, widely interpreted as a positive step towards easing trade tensions between the two economic giants.

In a related development, EU leaders discussed new American proposals for a common trade agreement during a summit held in Brussels. However, European Commission President Ursula von der Leyen expressed caution, stating that "all options are still on the table," without ruling out the possibility of negotiations failing.

The automotive sector led gains with a 1.5% increase, while the media sector advanced by 1.2%. Shares of German sportswear giants Puma and Adidas also reached high levels, rising by 4.3% and 2.9% respectively, influenced by American company Nike's quarterly results exceeding analysts' expectations.

On a related note, global investors are turning their attention to the release of Personal Consumption Expenditures (PCE) price index data later today, which is the Federal Reserve's preferred measure to monitor inflation, in search of signals that may determine the direction of monetary policy in the near future.