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European stocks rose on Wednesday morning after a string of strong corporate results a day earlier, while equities were also boosted by remarks from Federal Reserve Chair Jerome Powell. In Philadelphia on Tuesday, Powell suggested that another interest rate cut could come later this month in the US.

In Europe, shares in Netherlands-headquartered ASML, which makes equipment used in the production of AI chips, jumped after the company posted promising results on Wednesday.

The shares rose more than 4%, after Europe’s largest company by market value reported third-quarter earnings fuelled by the AI boom. ASML’s stocks have rallied by almost 50% since August.

Meanwhile, on Wednesday, French multinational luxury group LVMH said its organic growth re-entered positive territory in the third quarter. The luxury giant’s shares jumped by more than 14% by 13.00 CEST.

The mood in France also shifted on news that the government had significantly improved its chances of surviving a looming no-confidence vote on Thursday.

On Tuesday, Prime Minister Sébastien Lecornu won the much-needed support of the Socialist Party in France’s National Assembly, in exchange for suspending a pension law that raises the retirement age. The CAC 40 in Paris jumped over 2% by 13.00 CEST.

The main European benchmark stock exchanges were also in the green, except for London’s FTSE 100, which lost 0.43%. Meanwhile, the DAX in Frankfurt gained less than 0.1%. Milan’s FTSE MIB was up by 0.36%, Madrid’s Ibex 35 gained 0.71% and the STOXX 600 saw a 0.6% gain.

Gold continued its rally, hitting a high of $4,217 per ounce. Gold has soared over 60% in 2025 as investors seek a safe haven during a period of uncertainty, notably driven by US tariffs and trade tensions.

Global markets are on the rise after the Fed Chair’s words

Federal Reserve Chair Jerome Powell signalled on Tuesday that the Fed is slightly more worried about the job market, raising expectations that the central bank will come through with another rate cut.

“Rising downside risks to employment have shifted our assessment of the balance of risks,” he said at a meeting of the National Association of Business Economics in Philadelphia.

Traders took his words to heart, particularly as the US government shutdown has prevented the release of fresh economic data.

“[Investors were] reading Powell like a haiku — every pause, every syllable weighed for hidden meaning,” Stephen Innes of SPI Asset Management said in a commentary.

“The message, once decoded, was clear enough: two rate cuts aren’t just a possibility, they’re the main course,” Innes said.

The central bank cut its benchmark interest rate by a quarter of a percentage point in September amid worries that unemployment could worsen.

“Markets have been lifted by the rekindling of rate cut expectations in the US after comments from Fed chair Jerome Powell, which highlighted sluggish hiring were taken as an indication that not one, but two further cuts were very much on the table for 2025,” said Danni Hewson, AJ Bell head of financial analysis.

“Buoyed by continued deal-making in the frothy AI sector, investors seem prepared to overlook the growing number of warnings about the potential for a market correction at the moment, but this earnings season will be crucial if that optimism is to continue.”

S&P 500 futures rose 0.64% during the early afternoon in Europe, while Dow Jones Industrial Average futures gained 0.41%. Nasdaq futures were up by 0.79%.

On Tuesday, US markets closed a mixed trading day, with the S&P 500 giving up 0.16% and the Dow climbing 0.44%. The Nasdaq composite dropped 0.76%.

Markets remain volatile as the US and China exchange threats of new trade sanctions and tariffs.

Technology stocks are hypersensitive to trade issues since big chipmakers and other companies rely on China for raw materials and manufacturing. China’s large consumer base is also important for its sales growth.

In other dealings early Wednesday, US benchmark crude oil was circling around $58.65 per barrel (€50.43) and Brent crude, the international standard, was traded around $62.24 (€53.52) per barrel.

The US dollar slipped 0.25% against the Japanese yen, while the euro rose 0.19% against the dollar. The British Pound gained 0.35% against the greenback.

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There has been a huge wave of relief across European and US markets after Friday proved to be a dark day for investors.

Leading European stock indexes started the week in the green, as well as the US futures, while bitcoin, silver and gold rallied.

After leading stock indexes on the Wall Street dropped between 1.9 and 3.6% on Friday, Asian indexes followed the lead on Monday morning, and unanimously lost between 1% and 1.7%.

US stocks skidded on Friday after US President Donald Trump threatened to crank tariffs higher on China, signalling more trouble ahead between the two biggest economies. He was responding to restrictions Beijing is imposing on exports of rare earths, which are materials that are critical for the manufacturing of everything from consumer electronics to jet engines.

However, by the European opening on Monday, investors appeared to be cheered by the US president’s promising words, as he commented on the mounting US-China trade tensions on social media, saying, “Don’t worry about China, it will all be fine!”

Stock markets appear to reverse the losses from the end of last week, the FTSE 100 in London was up by 0.3% at around 10h CET on Monday, the Paris CAC 40 cheered the promise of a new government by gaining 0.7% and the Dax in Frankfurt joined the crowd by rising 0.5% by this time.

The Ibex 35 in Madrid also gained 0.8% and the European benchmark Stoxx 600 was up by nearly 0.5%.

Crypto rallies after Friday’s sharp decline

Bitcoin approached $115,000 on Monday, while Ethereum exceeded $4,200.

“The crypto market capitalisation stood at $3.9 trillion on Monday, up 4.4% from the previous day but down 6% from pre-Friday crash levels,” Alex Kuptsikevich, the FxPro chief market analyst, said.

Gold was up by more than 2.3%, trading at $4,092 an ounce, nearing 11h CET, while oil prices were also climbing, the US benchmark crude was up by nearly 0.9% at 59.85 a barrel, whereas the international benchmark Brent cost $63.69 a barrel, 1.5% increase in the price.

Meanwhile, US futures advanced, with the contract for the S&P 500 gaining 1.1% while that for the Dow Jones Industrial Average gained 1.5% and Nasdaq futures were climbing 2% by 10.30 CET.

In other dealings early Monday, the dollar rose 152.22 Japanese yen from 151.89 yen late Friday. The euro fell to $1.1605 from $1.1614.

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As investors digested the news of a potential rate cut from the United States’ Federal Reserve in the coming months, European markets saw a correction on Monday morning. Benchmark stock indexes dipped into negative territory except for the FTSE 100, which remained closed because of a bank holiday in the UK. 

The Dax in Frankfurt lost 0.4% soon after the opening, the CAC 40 in Paris dipped by 0.6%, the Madrid IBEX 35 was down by more than 0.4% and the European benchmark STOXX 600 decreased by 0.3% after 10.00 CEST. 

At the same time, the euro was slightly down against the US dollar, with the exchange rate at 1.1707.

Turning to market outliers, Danish energy company Orsted shares saw its shares fall to a record low, losing more than 17% of their value in Copenhagen. This came after the US administration halted the company’s offshore wind farm construction project called Revolution Wind on Friday, raising alarm among the company’s investors.

Meanwhile, JDE Peet’s shares soared more than 17% on the news that Keurig Dr Pepper would buy the Dutch coffee company in a €15.7 billion deal.

Asian trade followed US rally

The movements followed a cheerful trading session in Asia, where shares advanced on Monday, tracking Wall Street’s rally after the head of the Federal Reserve hinted that interest rate cuts may be on the way.

Fed chair Jerome Powell said on Friday at an annual conference in Jackson Hole, Wyoming, that he is aware of risks to the labour market — which could prompt faster rate cuts.

A surprisingly weak report on job growth this month has led many traders to expect a cut as soon as the Fed’s next meeting in September, after months of pressure from US President Donald Trump for lower rates.

Hong Kong’s Hang Seng index jumped 1.9% by the close, and the Shanghai Composite index surged 1.5%. The latter is trading at its highest level in a decade, despite worries over higher tariffs on exports to the United States under Trump and weak domestic demand at home.

Tokyo’s Nikkei 225 gained 0.4%, and the Kospi in South Korea climbed 1.3%. 

“Asia is set to rally in catch-up mode, feeding off Wall Street’s Friday rebound after Powell cracked the door open to rate cuts,” Stephen Innes of SPI Asset Management said in a commentary.

In other dealings on Monday morning, US benchmark crude oil gained 0.4% and was traded at $63.92 per barrel at around 11.00 CEST, while Brent crude, the international standard, added 0.25% to $67.39 per barrel.

The US dollar rose to 147.24 Japanese yen from 146.88 yen. 

Gold prices inched lower, by 0.2% to $3,410 an ounce. 

What to look out for this week

Nvidia’s earnings report, due on Wednesday after markets on Wall Street close, is a key focus of attention this week.

The firm’s role as a key supplier of chips for artificial intelligence, along with its heavy weighting, give it outsized influence as a bellwether for the broader market.

In Europe, inflation figures from France, Germany, Italy and other key European countries will be released on Friday.

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Leading European stock markets reflected a cautiously positive sentiment on Friday as investors watched for progress on Ukraine peace talks and awaited a speech from US Federal Reserve chair Jerome Powell. He will speak on Friday at Jackson Hole, where central bankers gather for their annual meeting. 

Markets also digested details of an EU-US trade truce and better-than-expected business activity data, announced on Thursday.

Despite the news that the German economy shrank more than initially estimated in the second quarter, the German DAX changed direction and made up its earlier losses, gaining around 0.1% after 11.00 CEST.

The FTSE 100, though trading in negative territory all morning, also followed suit and changed course, gaining a few points by late morning.

The Paris CAC 40 was up 0.2%, the Madrid IBEX 35 rose by 0.4%, and the European benchmark STOXX 600 increased by 0.2%. 

As for the London blue chip index, the early morning slight dip appeared to be just a small correction. “The FTSE 100 saw a subdued start on Friday after achieving a record close above 9,300 yesterday,” said AJ Bell investment analyst Dan Coatsworth in his note.

Investors are focusing on the message Federal Reserve chair Jerome Powell might deliver at the Jackson Hole summit in Wyoming.

“Investors had been expecting a rate cut from the Fed next month so if Powell were to say anything suggesting rates might be kept on hold, it could see stocks come under greater pressure,” said Coatsworth. He added that robust PMI data from the US on Thursday pointed to a strong economy, potentially reducing the chances of the Fed lowering borrowing costs.

A cut in interest rates would be the first of the year and it would give asset prices and the economy a boost — but it could also risk worsening inflation.

The Fed has been hesitant to cut interest rates this year out of fear that President Donald Trump’s tariffs could push inflation higher, but a surprisingly weak report on employment growth earlier this month suddenly shifted focus towards the job market. Trump, meanwhile, has forcefully pushed for cuts to interest rates, directing fierce criticism towards Powell.

US markets closed in a gloomy mood

On Wall Street on Thursday, the S&P 500 slipped 0.4% to 6,370.17, continuing a gradual decline since a record on 14 August. The Dow Jones Industrial Average dropped 0.3% to 44,875.50, and the Nasdaq composite fell 0.3% to 21,100.31.

In other dealings early on Friday, the US dollar rose to 148.48 Japanese yen, from 148.37 yen. The euro slipped to $1.1590 from $1.1606.

Meanwhile, oil prices fell by midday in Europe; the US benchmark crude lost 0.2% and was traded at $63.38 per barrel. Brent crude, the international standard, also was down by 0.2% at $67.52 per barrel.

Oil prices moved higher yesterday, “as the initial enthusiasm over progress towards a ceasefire between Russia and Ukraine continues to fade”, said ING in a note. Expectations of increased global uncertainty are driven by the difficulties of setting up a Putin-Zelensky summit and securing potential security guarantees for Ukraine.

Asian markets were also mixed on Friday

Asian shares were also mixed on Friday. In Tokyo, the Nikkei 225 rose less than 0.1% to 42,633.29 after Japan’s core inflation rate slowed to 3.1% in July, from 3.3% in June.

ING Economics said in a note that price pressures were broadly in line with market consensus. Inflation staying above 3% raises the likelihood of a rate hike as soon as October, it said.

In Chinese markets, Hong Kong’s Hang Seng index rose 0.9% to 25,339.14. The Shanghai composite index climbed 1.5% to 3,825.76.

South Korea’s Kospi added 0.9% to 3,168.73. Australia’s S&P/ASX 200 fell 0.6% to 8,967.40 as traders sold to lock in gains after the benchmark surged to record highs in recent trading sessions.

Published on
14/07/2025 – 10:22 GMT+2

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Investors in Europe reeled from US President Donald Trump’s tariff threats on Monday morning, sending the major indexes into negative territory.

As of around 9.30am CEST, France’s CAC 40 was down 0.52% at 7,788.23, the UK’s FTSE 100 slipped 0.38% to 8,941.12, and Germany’s DAX dropped 0.85% to 24,049.73.

Spain’s IBEX 35 fell 0.80% to 13,897.80, while Italy’s FTSE MIB dropped 0.86% to 39,726.27.

The STOXX 600 slid 0.48% to 544.73 and the STOXX 50 fell 0.83% to 5,338.57.

The movements come as EU trade ministers are meeting on Monday morning to discuss President Trump’s surprise announcement of 30% tariffs on the European Union. Trump shared the plans on Saturday and said that the same rate, set to kick in on 1 August, would be applied to goods from Mexico.

European officials have been working to secure a deal with the US after the president threatened a 50% tariff on EU exports in May, up from an initially proposed 20% rate. President Trump then retracted the threat of a 50% duty, although retained separate tariffs on exports like steel, aluminium, and cars.

In response to Trump’s announcement over the weekend, the president of the European Commission Ursula von der Leyen said the EU would not impose retaliatory tariffs on US imports before 1 August, allowing time for negotiation.

Denmark’s foreign minister, Lars Løkke Rasmussen, also told reporters ahead of the meeting on Monday: “We shouldn’t impose countermeasures at this stage, but we should prepare to be ready to use all the tools in the toolbox.” 

He added: “So we want a deal, but there’s an old saying: ‘If you want peace, you have to prepare for war.'”

Maroš Šefčovič, the EU’s trade representative in its talks with the US, also said on Monday that negotiations would continue. “I’m absolutely 100% sure that a negotiated solution is much better than the tension which we might have after 1 August.”

He told reporters in Brussels: “I cannot imagine walking away without genuine effort. Having said that, the current uncertainty caused by unjustified tariffs cannot persist indefinitely and therefore we must prepare for all outcomes, including, if necessary, well-considered proportionate countermeasures.”

In light of US isolationism, the EU is also looking to expand trade with alternative partners. Leaders from the bloc will travel to China for a summit later this month, seeking to promote stronger relations despite disagreements over the alleged “dumping” of cheap Chinese goods in Europe. This accusation prompted the EU to impose its own tariffs on Chinese goods last year.

While in China for the summit, EU leaders will also be courting other Pacific nations like South Korea, Japan, Vietnam, Singapore, the Philippines, and Indonesia, whose prime minister visited Brussels over the weekend to sign a new economic partnership with the EU. 

The downbeat investor sentiment in Europe also comes despite pledges to increase defence spending. France’s president Emmanuel Macron on Sunday pledged to raise France’s military spending by €6.5 billion over the next two years. Macron said the 2026 defence budget would be raised by €3.5bn, and another €3bn in 2027.

Published on
02/06/2025 – 13:29 GMT+2

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At the time of writing (13:05 CEST), all major European indexes were in the red after China said the US “severely violated” the terms of their recent trade agreement. Market participants also considered the impact of US President Donald Trump’s plan to double current tariffs on steel and aluminium from 25% to 50% from this Wednesday.

The EURO STOXX 50 was down 0.68%, Germany’s DAX fell 0.48%, while France’s CAC 40 declined 0.63%.

“Donald Trump has upset markets once again,” Russ Mould, investment director at AJ Bell, said in an email note sent to Euronews.

“Doubling import taxes on steel and aluminium, and aggravating China once again, mean we face a situation where uncertainty prevails. Trump’s continuous moving of the goal posts is frustrating for businesses, governments, consumers and investors.

“Equity markets were down across Europe and Asia, with futures prices implying a similar pattern when Wall Street opens for trading on Monday. Unsurprisingly, gold got a boost as investors returned to safe-haven assets.”

US markets end May on flat note

Meanwhile, US markets ended May on a flat note, although for the month as a whole each of the main indices rose strongly following hopes of tariff reconciliations.

“Such optimism will face an immediate challenge as June begins, with comments over the weekend keeping the aggressive rhetoric in place. The latest broadsides from the White House were primarily directed at China and the EU, with both threatening a response in kind to any further tariff hikes,” Richard Hunter, head of markets at Interactive Investor, said in an email note to Euronews.

However, he noted, back on the ground, there were some promising economic signs with the Federal Reserve’s preferred measure of inflation, the Personal Consumption Expenditures index coming in lower than expected and with a consumer sentiment index showing higher than had been feared.

“However, such respite could prove short-lived as the latter was largely predicated on an apparent softening of hostilities between the US and China in the latter part of the month, which has since evaporated. There will be a further signal on the state of the economy at the end of the week, with non-farm payrolls expected to show that 130,000 jobs will have been added in May compared to 177,000 the previous month and that the 4.2% unemployment rate will remain unchanged.

“In the meantime, US markets have repaired much of the damage wrought over the last few months although sentiment remains fragile. The Dow Jones and Nasdaq are down by 0.6% and 1% respectively in the year-to-date, while the 0.5% gain for the benchmark S&P500 has in part been driven by a resurgence of the mega cap technology trade,” Hunter said.

Asia markets under pressure

In addition to contending with the weekend comments, Asian markets fell foul of geopolitical uncertainty following the latest Russia-Ukraine developments, with the Hang Seng under pressure based on the renewed likely tariff hikes on aluminium and steel.

“Mainland China was closed for a public holiday, which could leave some losses being stored up ahead of its reopening, likely exacerbated by a report which showed a further contraction in factory activity over the last month,” Hunter added.

By Tina Teng

Published on
28/05/2025 – 7:29 GMT+2

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European stock markets extended their rally for a second consecutive trading day on Tuesday as concerns over escalating US-EU trade tensions eased. Germany’s DAX rose 0.82% to 24,226.49, marking a fresh record high, while the Euro Stoxx 600 climbed 0.33% to 552.33, edging within 0.2% of its March peak.

US President Donald Trump expressed optimism toward the trade negotiations. “I have just been informed that the EU has called to quickly establish meeting dates,” he wrote in the Truth Social, “This is a positive event, and I hope that they will, FINALLY, like my same demand to China, open up the European Nations for Trade with the United States of America. They will BOTH be very happy, and successful, if they do!!!”

The US president’s comments also lifted Wall Street, with the Dow Jones Industrial Average up 1.78%, the S&P 500 rising 2.05%, and the Nasdaq composite surging 2.47%.

On Sunday, Trump announced he had agreed to postpone the implementation of a 50% tariff on EU imports until 9 July, following a phone call with European Commission President Ursula von der Leyen. During the call, von der Leyen expressed the EU’s readiness “to advance talks swiftly and decisively” in a bid to avert further trade escalation.

Trump had initially announced 20% “reciprocal tariffs” on EU goods on 2 April before reducing the rate to 10% for 90 days. However, last Friday, he threatened to impose a 50% tariff from 1 June, citing frustration over the pace of negotiations and disagreement among EU member states.

While specific meeting dates remain absent publicly, EU Trade Commissioner Maroš Šefčovič is expected to meet his US counterpart in Paris next Tuesday during the Organisation for Economic Co-operation and Development (OECD) summit. Talks are expected to focus on removing bilateral tariffs on industrial goods and addressing US import levies on steel, aluminium, semiconductors, automobiles, and pharmaceutical products, according to sources familiar with the matter.

Earlier this month, the EU postponed a proposed package of retaliatory tariffs on up to €95 billion worth of US imports, including wine, spirits, aircraft, auto parts, electrical products, and more.

Defence and banking stocks lead gains

The DAX is up 22% year-to-date, making it the top performer among major global indices. The index had pulled back sharply in April following Trump’s announcement of the reciprocal tariffs but has consistently rebounded on signs of de-escalation in trade tensions.

In sectors, the defence and banking stocks led the broad gains, underpinned by optimism over Germany’s fiscal and defence spending reforms. In March, Germany’s Friedrich Merz announced plans to increase defence spending beyond 1% of GDP and a €500 billion special fund for infrastructure investment. The landmark fiscal package particularly lifted sentiment in European defence and industrial stocks, with Rheinmetall AG shares soaring 207% so far this year, repeatedly hitting new highs.

Meanwhile, European banking stocks have been supported by the European Central Bank’s accommodative monetary policy stance, which has bolstered investment banking income and lending activity. Shares of Deutsche Bank and Commerzbank soared 50% and 75% respectively this year.

The euro retreats

Despite the bullish momentum in equities, the euro weakened against the US dollar, as the greenback staged a strong rebound following Trump’s decision to delay tariffs — a move that mirrored previous dollar rallies during the US-China trade talks.

The EUR/USD pair fell to just above 1.13 during Wednesday’s Asian session, retreating from over 1.14 on Monday, as markets priced in renewed optimism over US-EU trade negotiations and an improved US economic outlook.

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Following a broad weekly rally on Wall Street amid a de-escalation in the US-China trade war, risk-off sentiment once again prevailed in global markets following a major downgrade of US credit ratings by Moody’s. Global equity indices fell during Monday’s Asian session as sell-offs in US assets resumed, with US stock futures, the dollar, and government bonds all declining.

Moody’s downgrades US credit ratings

On Friday, Moody’s Ratings, a major American credit rating agency, downgraded the “US long-term issuer and senior unsecured ratings” to Aa1 from the top-tier Aaa due to mounting concerns over rising government debt and widening fiscal deficits.

The agency stated: “Over more than a decade, US federal debt has risen sharply due to continuous fiscal deficits. During that time, federal spending has increased while tax cuts have reduced government revenues. As deficits and debt have grown, and interest rates have risen, interest payments on government debt have increased markedly.”

Moody’s downgrade followed similar moves by rival agencies: Standard & Poor’s cut its US sovereign credit rating to AA+ in 2011, and Fitch Ratings made the same downgrade in 2023.

The decision led to a rise in US government bond yields as investors demanded a higher premium to compensate for perceived risks. The 10-year Treasury yield rose by 5 basis points (1 basis point = 0.01 percentage point) to 4.48% on Friday, climbing further to 4.51% during Monday’s Asian session. The downgrade also appeared to dampen investor appetite for other US assets, including equities and the dollar.

Moody’s expects federal budget flexibility to remain “limited” without adjustments to taxation and government spending. The agency projected that the US deficit would expand by approximately $4 trillion (€3.58 trillion) over the next decade if the 2017 Tax Cuts and Jobs Act is extended. “Federal interest payments are likely to absorb around 30% of revenue by 2035, up from about 18% in 2024 and 9% in 2021,” Moody’s added.

“It does speak to a level of market risk in US debt, which is to say that the value of US bonds could be compromised if the economy can no longer run at the growth rates necessary to service the government’s liabilities,” Kyle Rodda, senior market analyst at Capital.com in Australia, said.

Risk-off sentiment prevails

US equity futures fell sharply during Monday’s Asian session following Moody’s downgrade. As of 4:42 am CEST, futures on the Dow Jones Industrial Average were down 0.65%, the S&P 500 dropped 0.92%, and the Nasdaq Composite declined by 1.22%.

Asian equities also came under pressure amid the risk-off tone. Japan’s Nikkei 225 dropped 0.66%, Australia’s ASX 200 declined 0.46%, and Hong Kong’s Hang Seng Index slid 0.56% during the same period.

The ripple effect is expected to spill into European markets, though major indices such as the Euro Stoxx 600 and the DAX were set to open flat.

The US dollar also weakened against other G10 currencies, particularly safe-haven currencies including the euro, the Japanese yen, and the Swiss franc. Gold prices rose amid increased haven demand, although the yellow metal pulled back from an intraday high, likely due to pressure from rising US bond yields. Gold futures initially surged over 1% before retreating and were 0.8% higher, trading at $3,213 per ounce as of 4:12 am CEST.

Despite market jitters, Rodda believes the impact of Moody’s move will be short-lived. “I don’t think it will have a lasting impact,” he said, although he views the downgrade as “a reminder of the very loose fiscal policy the US is running and the structural problems related to US public finance.”