European Markets Hovered Near Record Highs, EU-U.S. Trade Negotiators Struggled to Find Common Ground

Bridgette Randall
02 Jul, 2025
London

European markets retained an upward bias as investors awaited details of the ongoing trade talks with the U.S.

Benchmark indexes in Frankfurt, Paris, Milan, and London edged higher, and the euro and the pound traded at multi-year highs amid general weakness in the U.S. dollar. 

Investors are awaiting the details of trade talks with the U.S. ahead of the U.S.-imposed July 9 deadline.

The U.S. president has threatened to not extend the deadline to impose high tariffs, a negotiating tactic to put pressure on the European Union's negotiators to accept a 25% import tax on vehicle exports. 

The scope and the level of U.S. tariffs, which are paid by the U.S. consumers, remain uncertain amid constantly shifting U.S. trade policy.

On the economic front, the number of people registering as unemployed in Spain fell by 48,920, or 2%, from the previous month to 2.406 million in June, according to the data released by the Ministry of Labor and Social Welfare.

The number of registered jobless people dropped to the lowest since June 2008.

 

Europe Indexes and Yields

The DAX index increased by 0.5% to 23,788.64, the CAC-40 index edged higher by 0.6% to 7,705.34, and the FTSE 100 index advanced 0.2% to 8,804.89.

The yield on 10-year German bonds inched higher to 2.59%, French bonds increased to 3.27%, UK gilts moved up to 4.47%, and Italian bonds edged higher to 3.50%.

The euro decreased to $1.18; the British pound was lower at $1.37; and the U.S. dollar was higher and traded at 79.23 Swiss cents.

Brent crude decreased $0.13 to $66.98 a barrel, and the Dutch TTF natural gas was higher by €0.83 to €33.89 per MWh.

 

Europe Movers

Fashion stocks advanced after the U.S. dollar hovered near a 40-month low against the euro. 

LVMH gained 1.8% to €477.0, Kering SA jumped 2% to €199.64, Hermes International SCA gained 2.1% to €2,342.0, and Moncler SpA inched higher 2% to €50.44. 

Volkswagen AG gained 1.9% to €92.90, Mercedes-Benz Group AG advanced 2.5% to €50.61, BMW AG increased 3.3% to €77.82, Renault SA inched higher 1.9% to €40.95, and Stellantis NV edged up 1.6% to €8.75.