Investors focused on corporate earnings as they looked for clues about the impact of U.S. trade policies on companies. The pan-European STOXX 600 index rose 0.5% to 549.48 points, on track for its second weekly gain.
Other major regional indices also rose; France’s CAC 40 index led with a 0.6% increase. Wall Street hit record highs on strong economic data and earnings reports, showing that American consumers continue to spend. In Europe, positive corporate news offset trade concerns against threats from U.S. President Donald Trump to impose 30% tariffs on the European Union.
Investors await clarity from US-EU trade talks.Macro Hive’s macro strategist Viresh Kanabar said, “Globally, analysts have lowered their short-term earnings forecasts, so the bar is quite low.” “The only tax currently applied to Europe is 10%. This isn’t harmful, it just creates lasting effects if the rate increases.”
The UK and Germany signed a broad friendship treaty on Thursday aimed at deepening relations in areas such as defense and transport.
Europe’s energy and gas sector led broad-based gains with a 1.2% increase. Oil prices rose after the European Union approved new sanctions against Russia. Manufacturing reached a record high with a 0.7% increase; Saab increased its year-to-date earnings to over 130% after its second-quarter profits exceeded expectations with a 10.8% increase.
Vestas Wind Systems rose 12.3% after J.P. Morgan upgraded the Danish wind turbine manufacturer to “heavily over”. SKF reported second-quarter profits exceeding expectations with a 5.4% increase. Getinge, on the other hand, increased its profit on medical equipment by 6.3%. […] […] […] On the other hand, GSK lost 5.7% following the US FDA advisory panel’s recommendation not to approve the cancer drug Blenrep. […] […] […] […]
