FX.co ★ European Markets Head for Higher Open

European stocks are set to open on a positive note on Monday, rebounding from last week’s downturn. The potential recovery comes as tension between the US and China appears to diminish, with both nations expressing a willingness to return to the negotiating table. Last week concluded with a sharp decline in European markets, triggered by US President Donald Trump’s threat of significant tariff hikes against China, following China's implementation of new export restrictions on rare earth minerals. Nevertheless, Trump later conveyed a readiness to negotiate, hinting at an anticipated meeting with President Xi Jinping later this month and reassuring that trade relations with China "will all be fine." Market focus is also shifting towards the commencement of the third-quarter earnings season, with key European companies such as ASML, LVMH, and Nestlé scheduled to release their financial reports this week. In premarket activity, futures for the Euro Stoxx 50 and Stoxx 600 rose by 0.4% and 0.3%, respectively.