Against a backdrop of thin volumes, investors focused this Thursday on the progress of the Sino-American summit held in Beijing.

Chinese President Xi Jinping assured his American counterpart Donald Trump on Thursday that trade talks were moving forward at the opening of the two-day summit. The U.S. readout of the discussions also highlighted the willingness of both leaders to reopen the Strait of Hormuz, which has been de facto closed since late February. Donald Trump further described the meeting as 'extremely positive' on the economic front, while avoiding the sensitive issue of Taiwan during this first day of his visit to China.

This renewed diplomatic optimism supported the trend across financial markets, as investors remain attentive to global growth prospects and geopolitical tensions. U.S. indices were also trading in the green at the end of the European session, with the Nasdaq up 0.98% around 5:55 p.m.

On the geopolitical front, new negotiations between Israel and Lebanon began in the United States three days before the expiration of the current truce. This third round of talks, scheduled over two days, comes as tensions remain high on the ground. The Israeli army announced new strikes targeting Hezbollah in southern Lebanon on Thursday, after ordering the evacuation of eight villages. Several civilians were also injured in northern Israel by a drone launched by the pro-Iranian movement.

On the macroeconomic front, U.S. retail sales came in line with expectations for April, while import prices jumped much more than anticipated over the same period, fueling questions regarding the trajectory of U.S. inflation.

Two data points are on the agenda tomorrow in the United States: the New York Fed's Empire State manufacturing survey for May, followed by April industrial production. Investors will also monitor the transition at the head of the Federal Reserve, as this Friday marks the final day of Jerome Powell's term as Chair of the institution, before he is replaced by Kevin Warsh for a four-year term.

Stocks on the move

In Paris, the CAC 40 was supported by STMicroelectronics (+5.39%) and Stellantis (+3.32%). Conversely, Carrefour (-0.41%) and Airbus (-0.40%) finished at the bottom of the index.

In Madrid, Telefonica soared nearly 6% after reassuring investors about its financial trajectory. The Spanish operator confirmed its 2026 targets upon the release of quarterly results that were broadly in line with expectations, despite a net loss linked to its recent asset disposals in Latin America.

In London, Burberry fell nearly 7% after reporting a decline in annual revenue and announcing the suspension of its dividend payment to shareholders.

On the foreign exchange market, the euro is down 0.34% at 1.1675 dollars.