Germany's DAX pared early losses of over 2% to trade around 23,880 on Friday afternoon, after US regional banks’ quarterly results helped to ease some concerns over the banking sector. There were also signs of de-escalation in US-China trade tensions. President Trump described the current tariffs on Chinese goods as “not sustainable” and confirmed he would meet President Xi Jinping in South Korea in the coming weeks. Banks and financials stayed under strain, led by Deutsche Bank (-5.1%), Commerzbank (-3.3%), Allianz (-3.9%), M