European stocks rise as markets track UK politics and Trump China trip

European markets open higher

Shortly after the opening bell, the STOXX Europe 600 was up 0.34% at 613.50, with most sectors and major bourses trading in positive territory. Germany’s DAX led gains among major indices, rising 1.03% to 24,384.74. Spain’s IBEX 35 advanced 0.54% to 17,749.90, while Italy’s FTSE MIB climbed 0.50% to 49,726.98.

France’s CAC 40 gained 0.46% to reach 8,044.66. The U.K.’s FTSE 100 traded more modestly higher, up 0.06% at 10,331.81. The broader move higher came as investors digested corporate earnings from National Grid, 3i Group, Aviva and Telefonica, as well as awaited the release of U.K. first-quarter GDP data.

UK political uncertainty under scrutiny

Political developments in the U.K. remained a central focus for European markets. Prime Minister Keir Starmer’s leadership was described as vulnerable to potential challenges, keeping political turbulence elevated on the regional agenda. Reports on Wednesday suggested Health Secretary Wes Streeting could be prepared to launch a leadership bid as early as Thursday.

Market participants were closely monitoring U.K. borrowing costs amid the ongoing uncertainty. The political backdrop added an extra layer of risk assessment for investors already tracking economic data and corporate results.

Trump–Xi summit draws global attention

Global market sentiment was also shaped by U.S. President Donald Trump’s trip to Beijing for a highly anticipated presidential summit with Chinese President Xi Jinping. The visit is in focus amid hopes that the two countries can stabilize their relationship. Trump, who is accompanied by a group of U.S. executives including Tesla CEO Elon Musk and Nvidia CEO Jensen Huang, said the relationship between the two countries would be “better than ever before” as he met Xi on Thursday.

Trump has already held an initial bilateral meeting with Xi and is scheduled to tour the Temple of Heaven before attending a state banquet. In Asia, markets traded mixed overnight, while S&P 500 futures were little changed after a narrow rally in technology stocks pushed the index to fresh all-time highs on Wednesday.

FAQ

How did major European indices perform at the open?
Major European indices opened higher. The STOXX Europe 600 rose 0.34%, Germany’s DAX gained 1.03%, the IBEX 35 rose 0.54%, the FTSE MIB increased 0.50%, the CAC 40 advanced 0.46%, and the FTSE 100 edged up 0.06%.

Which companies reported earnings?
Earnings were reported by National Grid, 3i Group, Aviva and Telefonica.

What political developments are affecting U.K. markets?
U.K. markets are reacting to ongoing political turbulence, with Prime Minister Keir Starmer’s leadership seen as vulnerable and reports indicating Health Secretary Wes Streeting could launch a leadership challenge. Investors are watching U.K. borrowing costs in this context.

Why is Donald Trump’s trip to China significant for markets?
Trump’s summit with Xi Jinping is closely watched because markets hope for a stabilization of U.S.-China relations. The visit, attended by senior corporate executives, is seen as a key event for global economic and trade dynamics.