European stocks set for another lower open as tariff uncertainty dents sentiment
Good morning from London, and welcome to CNBC's live blog covering all the action and business news in European financial markets on Tuesday.
Futures data from IG suggest a negative start to the new trading week for European bourses, with London's FTSE 100 seen opening 0.3% lower, France's CAC 40 down 0.3%, Germany's DAX down 0.4%, and Italy's FTSE MIB 0.4% lower.
European bourses have been on edge since U.S. President Donald Trump announced earlier in July that he would impose a 30% tariff on goods imported from the EU starting Aug. 1. The EU said it hopes to strike a trade deal before then but an agreement remains elusive. The bloc's policymakers are reportedly considering retaliatory measures if a deal can't be reached.
U.S. Treasury Secretary Scott Bessent said Monday that implementing high tariff rates on countries starting Aug. 1 "will put more pressure on those countries to come with better agreements."
— Holly Ellyatt
Traders work on the floor at the New York Stock Exchange in New York City, U.S., July 21, 2025.
Brendan McDermid | Reuters
U.S. stock futures were little changed early Tuesday after the S&P 500 and Nasdaq Composite hit fresh records in Monday's trading session.
The S&P 500 rose about 0.1% and the Nasdaq Composite advanced nearly 0.4% yesterday, with both indexes hitting new all-time intraday highs and closing at records, aided by a pre-earnings jump in Alphabet. The Dow underperformed and ended the day marginally lower.
Meanwhile, Asia-Pacific stocks traded mixed overnight, with Japanese stocks reopening higher after the ruling coalition lost its majority in the upper house over the weekend.
— Holly Ellyatt
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'And I think the jury is out as to how quickly the uncertainty will be cleared under present circumstances.'Ms Lagarde also said that the uncertainty was affecting consumer and business behaviour. She added: 'The uncertainty in and of itself is also playing a role in relation to the level of risk that we see. 'It's trade-related, caused by tariff and non-tariff fears or expectations, and it's the overall uncertainty about the outcome which obviously induces different behaviour on the part of consumers and investors.' 02:14 PM BST Eurozone 'in good place' to deal with inflation, says Lagarde Christine Lagarde repeated the European Central Bank's view that the bank was 'in a good place' to deal with whatever comes next for inflation and the economy. 'Growth is developing mostly if not a little better than in line with our expectations,' she said. 'We are now confident that the inflationary shock of the past few years is now behind us, and our job now is to look at what's coming.' 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'The outlook for inflation is more uncertain than usual as a result of the volatile global trade policy environment,' Ms Lagarde on the other hand, inflation could end up higher if 'a fragmentation of global supply chains pushed up import prices and added to capacity constraints in a domestic economy'. Big spending increases on defence and infrastructure could also boost inflation. 'We are not pre-committing to a particular rate path,' Ms Lagarde said. 02:01 PM BST Stronger euro could lower inflation, says Lagarde Christine Lagarde said the strengthening of the euro could dampen inflation in the eurozone more than expected. The single currency has climbed 13pc against the dollar after Donald Trump's trade policies prompted a shift away from US assets. The European Central Bank president said most long-term inflation expectations were around 2pc. However she insisted that policymakers do not 'target any exchange rate' between the euro other currencies. She said ECB rate setters monitor the exhcnage rates as they matter for its forecasts. 01:55 PM BST Lagarde: Companies 'more hesitant to invest' The president of the European Central Bank said there were risks to economic growth in the eurozone as she explained why interest rates were held at 2pc. Christine Lagarde said the threat of tariffs, the stronger euro and 'persistent uncertainty' are 'making firms more hesitant to invest'. 01:40 PM BST Euro falls as interest rates held at 2pc The euro edged lower against the dollar after the European Central Bank held interest rates with a warning that 'the environment remains exceptionally uncertain'. The single currency dropped 0.2pc to $1.174 but was up 0.1pc against the pound at 86.7p. Carsten Brzeski of ING said: 'As ECB president Christine Lagarde had already stated at the last meeting in June: with a deposit rate of 2pc, headline inflation at 2pc and an inflation outlook that fulfills the old 'below but close to 2pc', the ECB can simply wait for who is holding the better trade cards and whether actual inflation will really behave as predicted.' Neil Birrell of Premier Miton said: 'With the likely impact of the probable tariffs being disinflationary in eurozone and the fiscal stimulus not being too inflationary given its nature, the ECB was under no real pressure to act on rates and therefore left them unchanged. 'However, unlike other major regions, it does have the luxury of being able to provide stimulus when required, with two rate cuts this year being a possibility if required, although no firm guidance is being provided, which isn't a surprise.' 01:18 PM BST ECB keeps interest rates on hold The European Central Bank has ended a run of seven straight interest-rate cuts, keeping its benchmark rate unchanged at 2pc. Inflation in the 20-country eurozone is at the bank's 2pc target, and the ECB said price pressures, including from rising wages, were still easing. Although the bloc's economy was 'resilient', the bank warned that 'the environment remains exceptionally uncertain, especially because of trade disputes'. Most economists expect the ECB will deliver one more cut when its rate-setters next meet in September. This would keep inflation from undershooting the target and help prop up a stuttering eurozone economy. US president Donald Trump has threatened a tariff on American imports from the EU of up to 30pc, although the latest reports suggest the levy could settle at 15pc. The eurozone economy expanded at an annual rate of 1.5pc in the first quarter, as exports surged to beat the tariffs. But household and government spending slowed, and the German GDP is flat-lining. 12:35 PM BST Reeves's tax rises are incompatible with growth, warns Lloyds boss Raising taxes will damage Britain's growth ambitions, the boss of Lloyds Bank has said. Charlie Nunn has warned Rachel Reeves that increasing levies further will damage the UK's competitiveness and undo the benefits of cutting red tape. Speaking on Thursday, Mr Nunn said that the reforms unveiled by the Chancellor in her Mansion House speech this month 'wouldn't be consistent with tax rises'. He said: 'It's important when looking at the competitiveness of the City of London that we have a competitive tax regime. We already have the highest tax regime in the financial services sector of any major economy.' 11:58 AM BST FTSE 100 hits new record high as rate cut expected The FTSE 100 climbed to a new record high as figures showing a weakening jobs market cemented the case for the Bank of England to cut interest rates next month. The UK's flagship stock index gained as much as 1.1pc to a record 9,158.21, outpacing most major European markets, amid renewed hopes for lower borrowing costs. French and German indexes have pulled back earlier gains, which were fuelled by hopes of an EU-US trade deal. However, the FTSE 100 surged after Sir Keir Starmer and Narendra Modi signed a free-trade agreement between Britain and India at Chequers. The index has risen for six consecutive days, with the latest jump coming as closely watched PMI data showed companies cut jobs in July at the fastest pace since February, blaming Rachel Reeves's Budget tax raid on businesses. Bruna Skarica, chief UK economist at Morgan Stanley, said: 'The economy is flatlining, employment is contracting, and while prices charged series ticked up, inflationary pressures still look more contained than earlier in the year. 'In a 'gradual and careful' manner, we expect the Bank of England will cut rates again in a fortnight.' 11:36 AM BST Modi: India and UK 'always play with a straight bat' Narendra Modi used a cricket metaphor to describe the UK-India relationship. Speaking alongside Sir Keir Starmer at Chequers, the Indian prime minister said that 'for both of us cricket is not just a game but a passion'. He said that sometimes there can be a diplomatic 'swing and a miss' but the two sides 'always play with a straight bat'. Mr Modi said India was 'committed to building a high scoring, solid partnership' with the UK. He made the comments as India and England are locked in a test cricket battle this summer. He concluded his remarks by extending an invite to Sir Keir to visit India 'very, very soon'. 11:22 AM BST Deal on workers will allow UK to benefit from India's 'skilled talent', says Modi Narendra Modi said the trade deal struck between India and the UK was the product of 'many years of hard work'. The prime minister of India thanked Sir Keir Starmer for the 'warm welcome and gracious hospitality' he had received at Chequers. Speaking through a translator, Mr Modi said the trade pact was a 'blueprint for our shared prosperity'. Mr Modi said a double contributions convention (DCC) deal which will make it easier for workers from each country to work temporarily in the other country would 'inject new energy into the service sectors of both countries'. He said it would 'promote ease of doing business' and the UK economy would benefit from India's 'skilled talent'. Opposition parties in the UK have claimed the DCC deal risked undercutting British workers. The Government rejected those claims as 'completely false'. 11:18 AM BST UK-India trade deal to cut Indian tariffs from 15pc to 3pc The UK-India trade deal is understood to be the largest of its kind for its economic impact on Britain. It will see tariffs on an array of British goods reduced from an average of 15pc to 3pc, with the aim of boosting the £11bn of imports into the south Asian nation. Whisky tariffs will be slashed in half and will fall further over successive years, while other industries including soft drinks, cars and cosmetics are also expected to see cheaper duties. The deal is expected to result in 2,200 jobs across the country and £6bn investment by British and Indian businesses. The UK and India are also bolstering co-operation on tackling corruption, fraud, organised crime and illegal migration, by sharing criminal records and other intelligence. But the deal has not given the UK as much access as it would have liked to India's financial and legal services industries. The UK-India trade agreement promises some benefits for the UK's financial services, with Chancellor Rachel Reeves understood to have pushed on behalf of the sector in discussions with her Indian counterpart. But more wide-ranging access was not agreed, and talks continue on a bilateral investment treaty aimed at protecting British investments in India and vice versa. The two nations also continue to discuss UK plans for a tax on high-carbon industries, which India believes could hit its imports unfairly. 11:11 AM BST Starmer takes credit for getting India trade deal over the line Sir Keir Starmer said the finalisation of the India trade deal would send a 'powerful message that Britain is open for business'. The Prime Minister said: 'The UK has been negotiating a deal like this for many years but it is this Government that got it done.' 'This is not the extent or the limit of our collaboration with India,' he added. Sir Keir said the two countries intended to 'strengthen our relationship further' in the coming years in areas like defence, climate and health. Trade negotiations started in 2022 under the previous Tory government. 11:09 AM BST Starmer: India trade deal will deliver £4.8bn boost to UK economy Sir Keir Starmer said the signing of the trade deal with India represented a 'landmark moment for both our countries'. Speaking alongside Narendra Modi at Chequers, the Prime Minister said the agreement was now 'signed, sealed and ready to be delivered'. The pact will be 'good for jobs, good for business' and will deliver a boost to the UK economy worth £4.8bn, he said. Sir Keir said the deal was the biggest agreed by the UK since Brexit. 11:07 AM BST Pound slips as bets grow on rate cuts The value of the pound has declined after weaker than expected private sector figures raised bets on the Bank of England cutting interest rates. Sterling dropped by 0.2pc against the dollar to $1.355 and fell 0.1pc versus the euro to €1.153 after closely watched PMI data showed Britain's jobs market is weakening. Private sector companies axed jobs in July at the fastest pace since February as they were hit by Rachel Reeves's tax raid. As a result, money markets indicate there is a 94pc chance that the Bank of England will reduce borrowing costs next month. James Smith, an economist at ING, said: 'April's hike in UK payroll taxes and the national living wage are squeezing hiring but keeping pressure on inflation. 'We think the former is a bigger concern than the latter, but for now the bar for faster Bank of England rate cuts appears high. We expect cuts in August and November.' 11:01 AM BST Pictured: Starmer and Modi hug as Indian PM arrives at Chequers 10:39 AM BST Starmer hails 'historic day' as he meets Modi Sir Keir Starmer said the signing of a new trade agreement between Britain and India was a 'historic day' as he welcomed Narendra Modi to Chequers. The Prime Minister said he and his Indian counterpart had agreed in the autumn to make a 'step change' in the relationship between the two countries. He said: 'So I'm really pleased and privileged to welcome you here today on what I consider to be a historic day for both of our countries, and the delivery of the commitment that we made to each other.' Mr Modi, speaking via a translator, described the UK and India as 'natural partners' and said the nations were 'writing a new chapter' in a shared history. Business Secretary Jonathan Reynolds and his Indian counterpart Piyush Goyal then formally signed the trade agreement in the great hall of Chequers, the Prime Minister's country estate in Buckinghamshire. 10:29 AM BST Britain 'at risk of continued jobs falls' Britain is at 'risk of continued jobs falls', economists warned after closely watched data showed employers cutting staff numbers in response to Rachel Reeves's tax raid. The UK PMI jobs index fell to 45.1 from 46.6 in June, which was the weakest since February, as companies reported that tax hikes on payrolls were forcing them to lower their headcount. Rob Wood, chief UK economist at Pantheon Macroeconomics, said the latest drop 'breaks a fitful improvement in the PMI jobs balance since February'. He warned that PMI data has recently been prone to revisions which have improved the picture for the UK economy but said the latest figures were likely to 'justify a rate cut next month' by the Bank of England. He said: 'For now we are inclined to downplay the weakness, waiting for the final PMI at least, but the jobs balance poses a risk of continued jobs falls.' 10:20 AM BST 'Not a lot of cheer' in UK economic data 10:07 AM BST Bank of England 'reassured' to cut interest rates The Bank of England will be reassured that it can keep cutting interest rates once a quarter after closely watched data showed a slowndown in Britain's economy. Growth in the UK's private sector slowed down last month as the PMI reported a reading of 51 in July, sliding from a nine-month high of 52 in June. Any score above 50 indicates that activity is growing while any score below means it is contracting. Ashley Webb of Capital Economics said: 'July's flash PMIs provide further evidence that the upside risks to inflation have continued to fade and payroll employment is still falling.' He added: 'Overall, the further falls in payroll employment and slowing services price inflation should reassure the Bank of England that it can cut interest rates from 4.25pc now to 4pc in August and continue cutting rates at the current pace of one 25 basis points rate cut per quarter.' 09:57 AM BST Borrowing costs edge lower as economy weakens The cost of government borrowing edged lower as traders bet that weak economic data cemented the case for the Bank of England to cut interest rates next month. The yield on two-year UK gilts – a benchmark for the cost of servicing the national debt – was down around two basis points to 3.85pc despite bond yields rising across the rest of Europe's major markets. 09:41 AM BST Job cuts accelerate as Reeves tax raid bites Britain's private sector companies cut jobs at the fastest pace since February, a closely watched survey showed, as Rachel Reeves's tax raid pushed up staffing costs. Employment in both the manufacturing and service sectors fell for the 10th consecutive month during July, the S&P Global Flash UK PMI showed. Bosses complained that increased payroll costs had forced them into redundancies and hiring freezes. In April, companies faced an increased in employer National Insurance contributions and the national minimum wage, which were announced in the Chancellor's Budget last year. 'The flash UK PMI survey for July shows the economy struggling to expand as we move into the second half of the year,' said Chris Williamson, chief business economist at S&P Global. 'The sluggish output growth reported in July reflected headwinds of deteriorating order books, subdued business confidence and rising costs, all of which were widely linked to the ongoing impact of the policy changes announced in last autumn's Budget and the broader destabilising effect of geopolitical uncertainty. 'Particularly worrying is the sustained impact of the Budget measures on employment. Higher staffing costs have exacerbated firms' existing concerns over payroll numbers in the current environment of weak demand, resulting in another month of sharply reduced headcounts in July. 'The weak growth trajectory and sustained culling of jobs will add to pressure on the Bank of England to cut rates again at its next policy meeting in August.' 09:30 AM BST Trump tariffs hit FTSE dividends UK-listed companies are expected to pay out £1.8bn less in dividends this year after Donald Trump's tariff policies hit the dollar. UK dividends fell by 1.4pc to £35.1bn in the second quarter of the year, a report by share registrar Computershare showed. It came as the value of the pound surged by 5pc against the dollar during the same period, impacting the results of many FTSE 100 companies, which measure their results in the US currency. President Trump's tariff policies have raised concerns about so-called US exceptionalism, prompting investors to shift assets away from the dollar to alternatives. As a result, Computershare forecast the UK would pay out dividends of £88.3bn this year, down 1.4pc. Chief executive Mark Cleland said: 'Overall, companies are cautious, tending not to announce significant increases in their dividends – indeed many have made cuts – and special dividends are in steep decline this year too.' 09:08 AM BST EU approves €93bn retaliation if US trade talks fail The European Union's member countries have approved counter-tariffs on €93bn (£80.7bn) of US goods. The tariffs could be imposed should the bloc fail to reach a trade deal with Washington, EU diplomats said. 09:05 AM BST Cars and healthcare to 'benefit most' from EU-US trade deal Carmakers, healthcare companies and consumer staples would benefit most from the potential EU-US trade deal, Deutsche Bank said. Analysts said the latest reports indicate there would be a 10pc tariff on top of the levies that existed before 'liberation day'. It said that if there were no tariffs on specific sectors, this 'would be even beyond our bullish base case', indicating it expects stocks would rally more sharly than expected. Strategist Maximilian Uleer said: 'We see consumer discretionary (foremost autos), healthcare and consumer staples as most hit from sector specific tariffs. 'Accordingly, we would expect the three sectors to benefit most.' 08:56 AM BST Banks help push European shares higher European shares rose to a six-week high amid optimism over a potential EU-US trade agreement. The pan-European STOXX 600 index gained 0.6pc to its highest since June 11. Germany's blue-chip Dax added 0.9pc and the UK's FTSE 100 advancing 0.6pc to an all-time peak, marking a sixth straight session of gains. A 2.3pc rise in banks led gains among European sectors, helped by Deutsche Bank and BNP Paribas. Deutsche Bank climbed 4.4pc after the German lender returned to a better-than-expected profit in the second quarter, while French bank BNP Paribas gained 1.9pc after reporting a smaller-than-expected decline in second-quarter profit. Roche gained 2pc after the Swiss drugmaker reported better-than-expected first-half operating profit. On the flip side, Nestle dropped 4.5pc after the Swiss consumer giant announced a strategic review of its vitamins business and posted first-half results. The European Central Bank is widely expected to keep rates steady at 2pc after seven consecutive cuts. 08:42 AM BST German factory output 'remains fragile' Germany's key manufacturing sector 'remains fragile', economists have warned after closely watched data showed factory output continued to shrink. The closely watched HCOB Germany Composite PMI showed factory production remained in contraction, where it has been for three years, although the pace of output has expanded for five months in a row. Its overall PMI reading – a tracker of private sector activity – declined unexpectedly to 50.3 in July from June's 50.4, although this shows activity overall remains in expansion territory. Dr Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said: 'The economic situation in the manufacturing sector remains fragile.' He added: 'Overall, we see increasing signs of a recovery in the manufacturing sector, a picture that is confirmed by the latest investment initiative by key business leaders and supported by the measures taken by the federal government, including more favourable depreciation conditions for investments since July 1. 'Even higher US tariffs should not fundamentally change this outlook.' 08:31 AM BST French private sector hit for 11th straight month France's private sector economy continued to deteriorate at the beginning of the third quarter as business activity shrankfor an eleventh successive month, a closely watched survey showed. French companies' expectations for the year ahead slumped sharply to their weakest since November last year, according to the HCOB Flash France PMI. Jonas Feldhusen of Hamburg Commercial Bank, said: 'France remains under considerable pressure, both economically andpolitically. GDP growth is unlikely to exceed the 1pc mark this year. At the same time, questions are mounting over whetherPrime Minister Bayrou can sustain his austerity course politically. Global trade upheaval is compounding the strain on France as a business location, though the recent deal between Washington and Tokyo may bring a potential EU–US agreement closer within reach.' 08:23 AM BST European stocks jump at the open European shares leapt higher at the open amid hopes for a trade deal between the EU and US. The Dax in Frankfurt surged by 0.9pc to 24,469.30 while the Cac 40 in Paris gained 0.4pc to 7,879.98. 08:10 AM BST Trump: Countries faces tariffs of 15pc to 50pc Donald Trump said countries in trade talks with the US would be hit with tariffs ranging from 15pc to 50pc. The US president told at AI summit in Washington: 'We'll have a straight, simple tariff of anywhere between 15pc and 50pc. 'A couple of — we have 50 because we haven't been getting along with those countries too well.' 08:04 AM BST UK stocks jump amid US trade deal optimism The FTSE 100 rose at the start of trading amid optimism that the European Union and US are nearing a deal for 15pc tariffs on goods from the bloc. The UK's flagship stock index climbed 0.4pc to 9,088.41 while the mid-cap FTSE 250 gained 0.1pc to 22,042.59. 07:57 AM BST European Central Bank expected to hold interest rates The European Central Bank is expected to announce that it will keep interest rates on hold later today. The ECB has halved its policy rate from a record 4pc to 2pc in the space of just one year after taming a surge in prices that followed the end of the pandemic and Russia's invasion of Ukraine. The hold would pause seven straight cuts as it waits for the fog surrounding Europe's trade relations with the United States to clear. With inflation now back at its 2pc goal and expected to stay there, eurozone central bankers are expected to instead observe what kind of tariffs Donald Trump imposes on the European Union. 07:43 AM BST Trump to visit Fed as he ramps up pressure for interest rate cuts Donald Trump will visit the US Federal Reserve later as he ramps up pressure on its chair Jerome Powell to cut interest rates. The US president has lambasted the head of the US central bank for being 'too late' to reduce borrowing costs, calling him a 'numbskull' on Tuesday and musing publicly about firing him. Mr Trump has said higher interest rates are costing the US economy billions of dollars. The US central bank held interest rates steady this year as policymakers monitored the effects of Mr Trump's tariff campaign on inflation. The White House announced the surprise visit from Mr Trump but gave no further details. It is not clear if Mr Trump will meet Mr Powell, who he nominated as Fed chair during his first term in office. It comes weeks after officials accused the Fed of mismanaging the $2.5bn renovation of two historic buildings in Washington, DC. 07:37 AM BST Brussels heads towards 15pc US tariff rate The European Union is on course to agree a trade deal resulting in a 15pc tariff on exports to the US, diplomats said. The rate, which could also extend to cars, would mirror the framework agreement the United States struck with Japan, officials said in a brief to EU envoys on the talks. Under the outlines of the potential deal, the 15pc rate could apply to sectors including cars and pharmaceuticals and would not be added to long-standing US duties, which average just under 5pc, Reuters reported. There could also be concessions for sectors like aircraft, lumber as well as some medicines and agricultural products, which would not face tariffs, the diplomats said. 07:31 AM BST Good morning European stocks were on track to surge at the start of trading amid hopes for an EU-US trade deal. France's Cac 40 was up 1.6pc in premarket trading while Germany's Dax gained 1.3pc after diplomatic sources told the Telegraph that Brussels is close to agreeing a trade deal that will slap 15pc tariffs on American imports of EU goods, similar to the deal with Japan. This would avoid a 30pc tariff threatened by Donald Trump in a letter to the European Union earlier this month. Deutsche Bank analyst Jim Reid said: 'Indeed, if a 15pc total rate inclusive of existing tariffs is agreed as suggested, this would mark only a marginal increase compared to the 10pc additional tariffs that EU exports to the US have faced since Liberation Day but with certainty about the future.' EU trade commissioner Maroš Šefčovič met with US commerce secretary Howard Lutnick on Wednesday. Mr Trump said the US was in 'serious negotiations' with the EU and that 'we will let them pay a lower tariff' if the bloc opens up to American businesses. US treasury secretary Bessent said: 'We are making good progress with the EU.' Here is what you need to know: 5 things to start your day Tesla takes veiled swipe at Trump | Tesla announces sharply lower profits amid a political backlash British Army tests German-made kamikaze drones | Start-up has raised £9m and is looking to make the devices in UK after working with MoD The wealthy seaside idyll facing a tidal wave of taxes | Residents of 'Britain's Palm Springs' have seen their lives turned upside down by Reeves's raid BT poaches Virgin Media O2's finance chief | Telecoms giant to appoint Patricia Cobian after four years at rival Sam Ashworth-Hayes: China and America are now locked in a race for the next superweapon | As a new cold war beckons, nurturing homegrown tech and talent has scarcely been so critical What happened overnight Asian shares rose amid optimism that the US-Japan tariff agreement will be followed by more trade deals. Traders are speculating that the US may soon reach a trade agreement with the European Union, after the Trump administration struck deals with Japan, the Philippines and Indonesia earlier this week. European leaders were meeting with top Chinese officials in Beijing to discuss trade, climate change and global conflicts. But observers said solid agreements were unlikely. In Asian trading, Japan's Nikkei 225 surged nearly 2pc to 41,983.50. The Shanghai Composite Index added 0.4pc to 3,595.58 while Hong Kong's Hang Seng index rose 0.4pc to 25,631,08. South Korea's Kospi climbed 0.9pc to 3,211.21 after central bank data showed Thursday that the country's economy expanded at a 0.6pc annual rate in the last quarter, above expectations thanks to robust private consumption and exports. India's BSE Sensex edged 0.7pc higher to 82,726.64 and Australia's S&P ASX 200 slid 0.1pc to 8,729.20. On Wall Street, the Dow Jones Industrial Average rose 1.1pc, to 45,010.29, the S&P 500 rose 0.8pc, to 6,358.97, and the Nasdaq rose 0.6pc, to 21,020.02. In the bond market, the yield on benchmark 10-year US Treasury notes rose to 4.388pc from 4.372pc late on Tuesday. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
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Corvette silenced in Europe — at least at start
General Motors' big, brash Corvette has been silenced in Europe for the first time — at least up to the first 70 kph (44 mph). The Chevrolet Corvette E-Ray hybrid launched in Europe with a 'stealth' mode that allows it to start on electric power for silent getaways. 'It's good for neighbor relations when you leave early in the morning,' GM Europe President Pere Brugal said at the supercar's launch at the Goodwood Festival of Speed on July 10. The new model adds a 162-hp electric motor on the front axle mated to a 1.9-kilowatt-hour battery to create the first all-wheel-drive Corvette. Sign up for the Automotive News Europe Focus on Electrification newsletter, a weekly wrap-up of the latest electric vehicle news, including interviews and global EV sales data. Overall power is 644 hp and the 0 to 100 kph time is 2.9 seconds, making the E-Ray the quickest production Corvette available in Europe. The price in the U.K. is £153,440 ($206,000) for the coupe variant, undercutting the Z06 but far above the standard V-8 model at £92,890. Both coupe and convertible versions of the E-Ray will be sold across Chevrolet's 18 European markets. The hybrid technology gives the U.S. automaker an answer to the increasing number of electrified supercars from European rivals. 'We think the timing is perfect,' Brugal said. 'The hybrid supercar market is experiencing huge growth.' Half of the models sold in Europe's exotic segment were plug-in hybrids in the first six months of the year, marking 49 percent growth for PHEVs, preliminary figures from market researcher Dataforce show. Some were SUVs, topped by the BMW XM, but electrified supercars also include the segment's No. 4 seller, the Ferrari 296 GTS, as well as the Ferrari SF90, Lamborghini Revuelto and McLaren Artura. Lamborghini's new Temerario, a replacement for the Huracan, will also be a PHEV. The E-Ray is a hybrid rather than a PHEV, but the model will also compete with the new Porsche 911 GTS T-Hybrid. Like the E-Ray, the 911 hybrid will have a 1.9-kWh battery pack. The Corvette was GM's bestselling car in Europe in the first half of the year, with volume of 338 — 39 sales ahead of the Cadillac Lyriq full-electric SUV, according to Dataforce figures. No other models have so far been offered by Cadillac in its launch markets of France, Germany, Switzerland and Sweden. More markets and models are coming, but Cadillac is in no rush to announce them. 'We're not here to push metal,' Brugal said. GM returned to Europe in 2024 with Cadillac after exiting the market in 2017 with the sale of its Opel and Vauxhall subsidiaries to PSA Group. Opel and Vauxhall are now part of Stellantis. Premium rivals to BMW, Audi and Mercedes-Benz — along with JLR and Volvo — have found it difficult to gain traction in Europe, but Brugal insists that customers will be lured to Cadillac by the combination of design, brand awareness and technology. Cadillac has yet to offer its Super Cruise hands-off, eyes-on semi-autonomous driving system in Europe, but that will change next year, Brugal said. GM has a fleet of vehicles testing Super Cruise on Europe's major highways with the aim of following Ford, which already offers its similar BlueCruise system in certain models, including the Mustang Mach-E full-electric SUV. Last year, Ford said it won permission to offer BlueCruise in 15 European Union countries over 133,000 kilometers (82,744 miles) of Blue Zones.
