Stocks tick up with eyes on earnings, US tariff deadline
Trump's claim that Washington was 'very close to a deal' to extend a China tariffs truce provided some optimism.
Dozens of economies around the world including the European Union and India are set to face higher US tariffs on Thursday, as Trump's long-threatened 'reciprocal' duties over trade practices he deems unfair take effect.
Separate 50% US tariffs on Brazilian imports came into place Wednesday, with significant exemptions, after Trump targeted Latin America's biggest economy over its prosecution of former president Jair Bolsonaro.
Oil prices rallied thanks to Trump's threat to impose higher tariffs on India over its purchase of Russian crude.
Kathleen Brooks, research director at trading group XTB, said 'decent' corporate results in the United States and Europe were overshadowing concerns about a US economic slowdown and the impact of 'Trump's continuing obsession with tariffs'.
Wall Street's main indices edged higher at the start of trading.
Paris rose in early afternoon deals, while Frankfurt was flat after data showed German industrial orders unexpectedly fell in June.
London advanced ahead of the Bank of England's expected decision to cut its key interest rate Thursday.
Markets kept an eye on US tariff developments, with several countries still racing to strike deals before Thursday's levies kick in.
European investors are 'in a relatively confident mood following a US-EU trade deal that eases concerns around tomorrow's tariff headline', said Joshua Mahony, chief market analyst at Rostro trading group. He added that markets are 'heavily focused on the likes of India and Switzerland', which have yet to reach a final agreement with Washington.
In a Tuesday interview with CNBC, Trump said he was looking at hitting pharmaceuticals with tolls that eventually reach 250%, while semiconductors were also in the firing line.
However, he signalled a more positive tone on talks with China, which analysts said helped boost Asian stocks.
In company news, shares in Danish drug giant Novo Nordisk fell 3.5 percent.
The group reported a sharp rise in second-quarter net profit but rising competition is hitting sales of its diabetes and obesity treatments Ozempic and Wegovy in the United States.
In London, shares in Swiss mining and commodity giant Glencore shed 3.7 percent after it posted widening first-half losses on falling coal prices, US tariffs and Middle East tensions.
In the United States, Disney lifted its full-year earnings forecast after reporting higher quarterly profits as it added 1.8 million subscribers to its streaming platform.
However, investors appeared to focus on a drop in revenue from its linear TV business, with its shares falling four% as trading got underway in New York. Shares in McDonald's climbed 1.5% after the fast-food chain posted a rebound in sales.
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