European Markets Scaled Higher, U.S. Hiked Import Duties On Steel and Aluminum

Bridgette Randall
04 Jun, 2025
London

European markets advanced as investors overlooked brewing trade tensions between the U.S. and the European Union. 

Benchmark indexes in Frankfurt, Paris, Milan, and London edged higher, and bond yields were stable ahead of the European Central Bank's rate decisions on Thursday. 

The U.S. president unilaterally increased import duties on steel and aluminum to 50% from 25%, prompting the European Union to warn that the move could jeopardize current negotiations. 

The European Union added that it is prepared to impose its own duties if needed on American products but prefers to focus on "negotiated solutions."

Investors are anticipating the European Central Bank to lower its rates on Thursday, as policymakers look for ways to soften blows to businesses and consumers amid macroeconomic uncertainties and a weakening export environment. 

 

Europe Indexes and Yields

The DAX index increased by 0.6% to 24,242.98, the CAC-40 index edged higher by 0.4% to 7,791.37, and the FTSE 100 index declined 0.05% to 8,783.00.

The yield on 10-year German bonds inched higher to 2.51%, French bonds decreased to 3.18%, UK gilts moved down to 4.63%, and Italian bonds edged higher to 3.49%.

The euro increased to $1.14; the British pound was higher at $1.35; and the U.S. dollar was lower and traded at 82.30 Swiss cents.

Brent crude decreased $0.17 to $65.46 a barrel, and the Dutch TTF natural gas was lower by €0.21 to €35.86 per MWh.

 

Europe Movers

Arcelor Mittal SA decreased 0.1% to €26.40, ThyssenKrupp AG edged up 4% to €8.76, and Salzgitter AG added 3% to €21.32. 

Semiconductor-related stocks advanced following a surge in the sector in overnight trading in New York. 

STMicroelectronics NV rose 5.7% to €23.72, Infineon Technologies AG gained 4.3% to €35.77, and ASML Holding NV gained 1.2% to €661.10.