European stocks are soaring, with Swiss stocks leading the charge as optimism grows over a potential reduction in U.S. tariffs. This positive sentiment is fueled by the prospect of a deal between the U.S. and Switzerland to slash tariffs, benefiting the country's luxury sector. Shares of Richemont, Swatch Group, and Givaudan are all up, with Richemont nearly 2% higher, Swatch Group advancing 2.8%, and Givaudan rising 1.5%. The SMI index is up 0.6% in early trade. Meanwhile, the U.K.'s FTSE index hit a new record high on Monday, with a 1% gain by 8:21 a.m. in London, and Germany's DAX, France's CAC 40, and Italy's FTSE MIB all in positive territory. Vodafone's earnings report is a bright spot, with a 5.5% gain after reporting a 7.3% revenue increase in the first half of the fiscal year 2026. However, the pound fell against the dollar due to a surprise slowdown in U.K. wage growth to 4.6% in the third quarter, and U.S. stock futures are near the flatline, while Asia-Pacific markets traded mixed, boosted by gains on Wall Street on Monday. Earnings reports in Europe on Tuesday come from Softbank, Nebius, Munich Re, and CEZ Group.
