European Stocks Rise on US-China Tariffs Truce

European shares rose on Tuesday following news of a US-China tariffs truce, with the European benchmark ending 0.21% higher and the Iseq All-Share index up 0.75%. Sectoral gains were led by energy shares, while declines in heavyweight technology stocks limited advances. AIB rose 2.09% to close at €7.10, leading gains in the Irish banking sector.

European shares surged on Tuesday following news of an extension to the US-China tariffs truce, with the European benchmark closing 0.21% higher at 547.89 and the Iseq All-Share index up 0.75% to 11,497.68. The positive sentiment was driven by a strong performance in the energy sector, while heavyweight technology stocks saw declines, limiting overall advances.

The Irish banking sector was a notable performer, with AIB rising 2.09% to close at €7.10, leading gains in the sector. Permanent TSB and Bank of Ireland also saw increases of 0.9% and 0.43% respectively. The FTSE 100 in London also made steady progress, closing up 0.2% at 9,147.81. The FTSE 250 ended 0.2% down, at 21,842.69.

In the technology sector, shares in Spirax Group soared 13% after reporting strong half-year results, while Entain fell back 1.9% after posting a £96 million pretax loss. The STOXX 600 saw gains across most sectors, with energy leading the way with a 1.5% advance. Vestas Wind Systems outperformed peers with a 4.7% gain.

Meanwhile, US stocks rallied after better-than-expected earnings from technology majors and expectations of rate cuts. Intel rose after President Trump praised its CEO, while On Holding's shares climbed after it raised its annual sales forecast. Cardinal Health fell after announcing a $1.9 billion acquisition.

European semiconductor stocks also experienced a rise, despite Trump's announcement of additional tariffs on chips. Major chipmakers confirmed their chips would not face additional tariffs, providing relief to equipment suppliers. The PHLX Semiconductor Index (SOX) rose by 1.2%, while individual stocks like Nvidia and Broadcom saw gains.

The rise in European shares reflects the market's confidence in the announced exemptions and the EU's commitment to maintaining a 15% tariff cap on chip exports. This development highlights the resilience of the semiconductor industry in the face of geopolitical uncertainties.

References:
[1] https://www.irishtimes.com/business/2025/08/13/us-china-tariffs-truce-buoys-european-shares/
[2] https://www.ainvest.com/news/european-chip-stocks-surge-tariff-cap-confirmation-2508/