The Danish C25 stock index is showing an increase of approximately 1.2 percent following the opening of the stock market on Monday. This positive movement is largely attributed to US President Donald Trump’s decision to extend a tariff pause on goods from the European Union until July 9.

Leading the gains within the index are pharmaceutical companies like Zealand Pharma and Novo Nordisk, along with the transport company DSV. Their strong performance contributes significantly to the overall upward trend of the C25 index.

The tariff pause extension comes amidst ongoing trade negotiations between the US and the EU, aimed at establishing tariff rates for goods exchanged between the two entities. Initially, President Trump had suggested implementing a 50 percent tariff on EU goods starting June 1, citing a deadlock in negotiations.

However, following a phone conversation with Ursula von der Leyen, President of the EU Commission, Trump altered his stance and agreed to the extension. Trump communicated this decision via social media, expressing his belief that negotiations would commence promptly.

According to Henrik Olejasz Larsen, Investment Director at Sampension, this announcement of a tariff pause is the primary driver of Monday’s favorable market conditions. He further suggests that the ongoing trade war continues to be a major influencing factor on stock market trends.

Larsen cautions that despite the extension, the trade situation remains uncertain, and investors should anticipate potential fluctuations in the markets as the trade war evolves. The investment director noted that shifts in tariff-related communications from Donald Trump have induced volatility in global stock markets for nearly two months.

The markets experienced notable daily declines at the beginning of April. However, many stocks have since recovered a significant portion of those losses.