European Markets Edged Higher and Euro Held Near 4-Year High

Bridgette Randall
03 Jul, 2025
London

European market indexes advanced, and the euro held amid rising optimism that the U.S. and the EU may strike a trade agreement before the looming deadline next week. 

Benchmark indexes in Frankfurt, Paris, Milan, and London edged higher, and investors shifted their focus to trade negotiations. 

The U.S. and the European Union are struggling to find a common ground on lower tariff rates on vehicles and parts, food products, and steel and aluminum. 

In 2024, the European Union's trade surplus with the U.S. was $161 billion, driven largely by the goods surplus of $236 billion. 

The trade agreement is likely to increase import tax on goods shipped from the European Union to as high as 20% from the current 10%. 

 

Europe Indexes and Yields

The DAX index increased by 0.2% to 23,838.47, the CAC-40 index edged higher 0.3% to 7,758.40, and the FTSE 100 index advanced 0.5% to 8,819.84.

The yield on 10-year German bonds inched lower to 2.60%, French bonds decreased to 3.30%, UK gilts moved down to 4.53%, and Italian bonds edged lower to 3.51%.

The euro increased to $1.18; the British pound was higher at $1.37; and the U.S. dollar was lower and traded at 79.09 Swiss cents.

Brent crude decreased $0.70 to $68.40 a barrel, and the Dutch TTF natural gas was higher by €0.31 to €33.62 per MWh.

 

Europe Movers

Semiconductor chip design software companies gained after the U.S. lifted some of the sales restrictions to China. 

Siemens AG gained 1.1% to €222.10, Infineon Technologies AG increased 1.6% to €36.83, and NXP Semiconductors NV added 3.5% to €195.0. 

Fashion and luxury stocks advanced in the hopes that the European Union and the U.S. could set aside their differences after the U.S. announced a trade deal with Vietnam. 

LVMH gained 0.1% to €493.35, Kering SA increased 0.3% to €204.55, Hermes International SCA decreased 0.3% to €2,314.0, and Moncler SpA declined 0.5% to €51.26.