European stocks gained momentum on Monday afternoon, with the STOXX 50 up 0.7%, after the EU signaled progress on a trade deal with the US. The bloc is aiming to avoid a major tariff escalation by working toward a preliminary agreement that would include a 10% universal tariff on many goods, with lower rates for key sectors such as pharmaceuticals, alcohol, semiconductors, and commercial aircraft. At the same time, the EU is preparing retaliatory tariffs on a range of US products in response to Trump’s metal duties. Officials also warned that additional measures - such as export controls and limits on US access to public contracts - could be introduced if no deal is reached. Elsewhere, energy stocks came under pressure after OPEC+ announced a larger-than-expected output increase for August. In single-stock moves, Siemens Healthineers and other German medical tech firms fell after China imposed counter-sanctions on EU medical devices. Merck KGaA also declined following a broker downgrade.