European stocks climbed broadly on Thursday, with investors closely following developments from the U.S. President’s trip to China and related diplomatic discussions.
By 03:05 ET (07:05 GMT), the pan-European Stoxx 600 had risen 0.4%. Germany’s Dax led gains among major bourses, advancing 1.1%, while France’s CAC 40 was up 0.6%. The U.K.’s FTSE 100 was largely unchanged over the same interval.
The first round of talks between President Donald Trump and Chinese President Xi Jinping concluded during a two-day summit. Xi told state-controlled media that trade negotiations were progressing, but he also warned that U.S. pressure over Taiwan had the potential to undermine bilateral relations.
Market attention extended to whether the leaders discussed the war in Iran. Some analysts have proposed that President Trump might try to enlist China - a major importer of Iranian oil - as a guarantor of any durable peace arrangement, though there is no clear indication that Beijing would accept such a role.
Investors are weighing these diplomatic signals against an already uncertain global growth backdrop, complicated by continued closure of the Strait of Hormuz. That waterway, off Iran’s southern coast, handles roughly one-fifth of global crude flows, and its effective shuttering has contributed to elevated oil prices.
Brent crude futures were trading above $105 a barrel, compared with a pre-war level near $70 a barrel. The jump in energy costs has amplified concerns about inflation and slower growth. "Higher energy prices come with softer growth and higher inflation," analysts at Morgan Stanley said in a note.
Alongside geopolitical developments, the European corporate earnings calendar continued to supply market-moving headlines. Luxury retailer Burberry saw its shares fall after its board announced it would not declare a dividend and cautioned about an uncertain macroeconomic environment for fiscal 2027.
By contrast, Polish e-commerce group Allegro raised its annual outlook for its international operations, a move that pushed the company’s shares higher.
Summary - investors reacted to diplomatic and geopolitical developments in China and the Gulf, while company-level results and guidance added idiosyncratic moves across equity names.