European Markets Advanced Amid Receding Global Trade Tensions

Bridgette Randall
27 Jun, 2025
London

European markets edged higher on Friday and extended weekly gains amid improving global market sentiment. 

Benchmark indexes in Frankfurt, Paris, Milan, and London advanced after worries about the looming U.S. tariff threats eased. 

Market sentiment got an additional boost after the White House spokesperson confirmed the Trump administration is flexible with the upcoming deadline on July 9 for additional tariffs. 

Moreover, the ceasefire between Iran and Israel held for the third day in a row, calming market anxieties about the global crude oil supply disruptions through the Strait of Hormuz.

On the economic front, France's overall consumer price inflation eased to an annual pace of 0.9% in June, the INSEE reported Friday. 

The uptick in inflation was driven by a higher services inflation of 2.4% compared to 2.1% in the previous month. 

Spain's consumer price inflation increased more than expected to an annual pace of 2.2% in June, but the core rate of inflation held steady at 2.2%.

 

Europe Indexes and Yields

The DAX index increased by 0.8% to 23,842.37, the CAC-40 index edged higher by 0.8% to 7,618.02, and the FTSE 100 index advanced 0.3% to 8,759.53.

For the week, the DAX increased 2.2%, the CAC-40 increased 1.1%, and the FTSE 100 index edged up 0.5%. 

The yield on 10-year German bonds inched higher to 2.58%, French bonds increased to 3.26%, the UK gilts moved down to 4.47%, and Italian bonds edged higher to 3.50%.

The euro increased to $1.17; the British pound was higher at $1.37; and the U.S. dollar was lower and traded at 79.93 Swiss cents.

Brent crude increased $0.47 to $68.20 a barrel, and the Dutch TTF natural gas was higher by €0.79 to €34.29 per MWh.