European stocks kicked off Monday June 9th, 2025 with a cautious step, the STOXX 600 barely budged, as markets held their breath ahead of fresh U.S.–China trade talks in London.

With many European bourses closed for the Whit Monday holiday, trading volumes were muted, but underlying sentiment remained cautiously optimistic.

What had investors on edge? First up, the U.S. and China were sitting down again in London, seeking a breakthrough in their ongoing tariff truce. Markets are hopeful but not expecting fireworks; this is a slow burn.

Reports suggest that rare-earths, semiconductors, and export controls are still deeply divisive, but both sides seem committed to finding middle ground. If deal-makers deliver even a hint of progress, expect a pickup in risk appetite.

On the corporate front, one headline stood out: Alphawave surged over 23% after Qualcomm unveiled plans to acquire it for about $2.4 billion, which is a near 96% premium to beef up its AI and data-center tech arsenal.

Alphawave’s cutting-edge “serdes” tech was a major draw, and Qualcomm’s move underscores U.S. firms scooping up British tech at bargain valuations.

The UK market has watched similar exits recently, with firms like Wise and Darktrace heading to U.S. shores.

Amid the holiday-laden backdrop, several stocks made subtle waves: WPP dipped after its CEO announced plans to retire by year’s end , while automakers with exposure to rare-earth components saw mixed trading as the geopolitical narrative lingered.

Here’s the takeaway: Europe’s markets are in limbo,  rallying on the back of global trade cheer and acquisitions, yet held back by sticky headlines on tariffs and central bank signals.

The next few days will be key. Will U.S.–China talks spark a sustained rally, or will fresh stumbling blocks keep markets muted?

Investors should keep one eye on the STOXX 600 and the other on London trade negotiations, that’s where the next directional clue lies.