Europe open: DAX hits record high; Investors study US/UK deal

(Sharecast News) - European stock markets opened higher on Friday as Germany's DAX hit record highs, recovering all the ground lost during the Donald Trump-inspired tariff turmoil.

The pan-regional Stoxx 600 index was up 0.37% in early trade. The DAX rose 0.68% and hit its fresh high of 23,527.

Meanwhile investors assessed the relatively few details revealed in the much-hailed UK and US trade agreement and looked ahead to talks between Washington and China on tariffs.

"Not only do we have a new pope this week, but we also have the first deal in Trump's global trade war - between the UK and the US. Trump's enthusiastic announcement, complete with a lot of CAPITAL LETTERS, helped inflate sentiment, making this US-UK deal feel bigger than it actually is," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

"The fact that the two countries could agree on a few points is a good start, but the UK entered the negotiations with a tariff rate of 10% and left the table with... a tariff rate of 10%."

Meanwhile China exports jumped by 8.1% year on year in April, beating forecasts for a 1.9% rise, while imports dipped by 0.2%. The increase came despite a slump in trade with the US amid the ongoing tariff war.

Shipments to the US fell 21% as tariffs imposed on China by US President Donald Trump rose to 145% during April. Imports from America fell almost 14% after Beijing's retaliated with levies of 125%.

In equity news, vaccine developer Bavarian Nordic surged on first-quarter results.

Airbus shares were up slightly as British Airways owner IAG placed a large order for its jets, while the airline group was higher after surging first-quarter earnings.

Reporting by Frank Prenesti for Sharecast.com