Source: Sharecast
The pan-European Stoxx 600 advanced 1.08% to close at 550.22, rebounding from the previous session’s losses.
France’s CAC 40 led major indices with a gain of 1.37% to 7,850.43, while Germany’s DAX rose 0.83% to 24,240.82 and London’s FTSE 100 added 0.42% to finish at 9,061.49.
US trade development underpin sentiment
Markets took their cue from fresh trade developments overnight.
US president Donald Trump unveiled new tariff agreements with Japan, Indonesia and the Philippines, including a 15% tariff deal with Tokyo.
“News of a trade agreement between the US and Japan is fostering optimism among investors that further deals might be reached before punishing tariffs come into force,” said AJ Bell’s Russ Mould.
The moves raised hopes that the EU and India might be next in line for similar agreements.
Investor sentiment was further supported by comments from US Treasury secretary Scott Bessent, who said the current trade truce with China was likely to be extended beyond the 12 August deadline.
“The beleaguered Japanese car industry revved up on the news,” Mould added, noting the developments eased fears of a “cliff edge” scenario.
Patrick Munnelly of TickMill said the easing of trade tensions, alongside expectations of earnings from major US tech firms, helped offset recent disappointments from US companies exposed to tariffs.
He also noted that the ECB was likely to keep policy rates steady in the near term, with inflation at or near target levels but downside risks persisting, particularly from export weakness tied to US tariffs.
SAP in the red, UniCredit jumps after shelving Banco BPM takeover
In corporate news, SAP shares dropped 4.1% after the software group warned of “significant headwinds” due to U.S. dollar weakness and uncertainty surrounding tariffs.
In contrast, UniCredit jumped 3.63% after it raised full-year profit guidance and shelved its proposed takeover of Banco BPM, whose shares fell 2.47%.
The Italian lender also announced increased capital distributions to shareholders.
London’s Informa was among the standout gainers on the FTSE 100 after it boosted its dividend, expanded its share buyback, and lifted full-year guidance, signalling ongoing strength in the post-pandemic recovery of physical and hybrid events.
GSK, AstraZeneca, and Diageo were also in focus amid optimism for tariff relief, with Mould noting that “companies with tariff exposure were among the big gainers in early knockings in London.”
Reporting by Josh White for Sharecast.com.
