Paris (AFP) - European stock markets rallied Monday after US President Donald Trump delayed 50-percent tariffs on the European Union until July 9 to give more time for negotiations.

Trump sent the markets into a tailspin again on Friday when he threatened to hit EU goods with the huge tariff from June 1 as talks were “going nowhere”.

Along with that threat, he warned that he would hit smartphone makers with 25-percent tariffs if they did not make their handsets in the United States.

Trump provided some relief Sunday by saying he was putting off the EU tariffs until July 9 after a “very nice call” with European Commission President Ursula von der Leyen, adding that officials will “rapidly get together and see if we can work something out”.

Von der Leyen vowed to move “swiftly” to reach a deal.

On Monday the Paris CAC 40 index closed 1.2 percent higher while the Frankfurt gained 1.7 percent.

London and Wall Street were closed for holidays, but US futures were higher while Asia struggled.

Analysts said the latest unexpected salvos from the White House highlighted the uncertain path investors are having to walk owing to the president’s volatile policy pivots.

“The stock market seems to dance to Trump’s tune: first a threat, then a pullback, quickly followed by a rebound as speculative investors anticipate a concession from the US president,” said Jochen Stanzl, chief market analyst at CMC Markets trading platform.

“This morning’s confirmation of such expectations reinforces the so-called ‘Trump Pattern’, which is increasingly seen as a successful strategy for risk-tolerant investors.”

The dollar remained under pressure after dropping Friday.

Oil prices fluctuated and ended flat, with producers’ group OPEC+ expected this week to continue to raise production despite low prices, after pressure from Trump.

- Steel saga -

Investors have also fretted over Trump’s economic policies, with US long-term government bond yields surging last week over concerns that his tax relief and spending cuts plan – which was approved by the House – will increase the US debt pile.

Traders are also looking ahead to Wednesday’s release of minutes from the Fed’s earlier May policy meeting, hoping for an idea about the central bank’s views on the economy.

That is followed by the Fed’s preferred measure of inflation – US personal consumption expenditures – on Friday.

In company news, shares in Seoul-listed Samsung rose almost one percent despite Trump’s threat of tariffs on smartphone makers.

In Tokyo, Nippon Steel rallied as much as 7.4 percent after Trump threw his support behind a new “partnership” between the Japanese firm and US Steel. It ended up 2.1 percent.

US Steel soared 21 percent in New York on Friday.

In Europe, shares in steel giant ThyssenKrupp surged 8.7 percent after the firm said it planned a major overhaul that will split the vast conglomerate into several standalone businesses.

Swedish carmaker Volvo rose more than two percent after it announced it would cut 3,000 jobs as part of a $1.9 billion cost-cutting plan.

- Key figures at around 1545 GMT -

Paris - CAC 40: UP 1.2 percent at 7,828.13 points

Frankfurt - DAX: UP 1.7 percent at 24,027.65

Tokyo - Nikkei 225: UP 1.0 percent at 37,531.53 (close)

Hong Kong - Hang Seng Index: DOWN 1.4 percent at 23,282.33 (close)

Shanghai - Composite: DOWN 0.1 percent at 3,346.84 (close)

Euro/dollar: UP at $1.1382 from $1.1369 on Friday

Pound/dollar: UP at $1.3563 from $1.3535

Dollar/yen: UP at 142.81 yen from 142.57 yen

Euro/pound: DOWN at 83.91 pence from 83.96 pence

West Texas Intermediate: UP 0.1 percent at $61.62 per barrel

Brent North Sea Crude: UP 0.1 percent at $64.88 per barrel

New York - Dow: Closed for a holiday

London - FTSE 100: Closed for a holiday