2025.10.1715:14:37UTC+00European Stocks Trim Losses Amid Hopes for US-China Trade Thaw

European stock markets trimmed their losses on Friday, with the STOXX 50 and STOXX 600 indices closing down by 0.6% and 0.8%, respectively, after experiencing declines of up to 1.9% earlier in the trading session. Investor sentiment improved following remarks from President Trump, who suggested that the high tariffs on Chinese products might not be a permanent measure. This statement sparked hope for a possible reduction in US-China trade tensions ahead of his forthcoming meeting with China's President Xi Jinping. However, banking stocks remained under pressure. Deutsche Bank fell by 5.9%, Societe Generale by 4.6%, BNP Paribas by 3.7%, Banco Santander by 3.2%, and UniCredit by 2.6% amid renewed concerns about credit issues in US regional banks, which have reignited fears of broader contagion in the sector. Rheinmetall's shares also dropped 6.5% due to China's tighter export controls on military-related rare earth materials. In the corporate earnings arena, EssilorLuxottica saw a notable increase, surging over 12% after announcing record third-quarter sales. In contrast, Volvo's shares fell by 7% as the company cited "difficult market conditions in North and South America" negatively impacting its performance.