logo
Trade deal hopes lift Europe ahead of ECB meeting

Trade deal hopes lift Europe ahead of ECB meeting

Reuters24-07-2025
LONDON, July 24 (Reuters) - Trade deal optimism lifted world stocks to fresh record highs on Thursday, ahead a raft of global economic data, the European Central Bank's pre-summer break interest rate meeting and an unexpected trip to the Fed by U.S. President Donald Trump.
Reports the European Union and Washington were closing in on 15% tariffs with exceptions for some key sectors came hot on the heels of a deal with Japan and lifted MSCI's broadest index of world equities (.MIWD00000PUS), opens new tab for a seventh straight session.
Tokyo's Nikkei 225 (.N225), opens new tab finished within touching distance of its own all-time high overnight and the bullish mood continued in Europe as Germany's export-reliant DAX (.GDAXI), opens new tab jumped over 1% and the regional STOXX index (.STOXX), opens new tab climbed 0.6%.
Better than expected Deutsche Bank (DBKGn.DE), opens new tab results that sent its shares up over 4% helped lift banking stocks to their highest since the 2008 global crash, although Nestle (NESN.S), opens new tab slumped 4.5% after it posted first-half results and put one of its businesses up for sale.
Focus was already turning to the European Central Bank's pre-summer break meeting where the bank looks set to hit pause after seven straight rate cuts that have halved euro zone rates from 4% to 2% over the last year.
Inflation is now back at the ECB's 2% goal and expected to stay there, and it is hoping the fog hanging over Europe's trade relations with the U.S. is about to clear.
"This one is sure to be a hold, so we are watching what (ECB President) Christine Lagarde says about the economy and the trade negotiations with the U.S.," TD Securities' European macro strategist Julie Ioffe said.
"Right now the talks are definitely not pointing to 10% tariffs - we are expecting between 15-20%, so either way that is above the ECB's base case and will push them towards further cuts," she added, saying a September move was expected.
There was a mixed bag of PMI data too, which showed fragility in France following budget cut proposals there, but also resilience in Germany and other parts of the euro zone that lifted the regional figure to an 11-month high.
The euro dipped 0.1% to $1.1760, although that wasn't far from a more than three-year high of $1.1830 hit earlier this month. Trade hopes also lifted the risk-sensitive Australian dollar to an eight-month high of $0.6625.
Against the yen the dollar fell 0.1% to 146.35, extending its drop to a fourth straight session.
Olivier Korber, an FX strategist at Societe Generale, said he expected the yen to strengthen further, citing support from the trade deal and the possibility of higher Japanese interest rates.
Markets remained relatively relaxed after a surprise White House announcement that Donald Trump, who has been ramping up his attacks on Fed Chair Jerome Powell again in recent weeks, would visit the U.S. central bank's headquarters later.
The purpose of Trump's visit is unclear but it may be a move to pressure Powell and the Fed to cut rates, and it comes just a few days before the next Fed policy meeting at the end of this month, said Vasu Menon, managing director of investment strategy at OCBC.
The yield on benchmark 10-year Treasury notes was broadly steady at 4.3937%, but the EU trade deal talk lifted Germany's 10-year yield 7.5 basis points to 2.674%. That was shaping up to be its biggest rise since mid May.
Wall Street stocks futures pointed to more record highs there later.
Second-quarter earnings are well underway, with 23% of the companies in the S&P 500 having reported. Of those, 85% have beaten Wall Street expectations, according to LSEG data.
In commodity markets, oil prices rose on speculation the various trade deals would support global growth and after a sharper than expected decline in U.S. crude inventories. U.S. crude ticked up 0.52% to $65.59 a barrel.
Gold was slightly lower at $3,370 per ounce as rising appetite for risk in broader markets dented demand for safe-haven assets.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

The Trump family has raked in an astonishing $3.4 billion over his two presidencies, new report claims
The Trump family has raked in an astonishing $3.4 billion over his two presidencies, new report claims

The Independent

time15 minutes ago

  • The Independent

The Trump family has raked in an astonishing $3.4 billion over his two presidencies, new report claims

President Donald Trump and his family may have made billions off his two presidencies, a new report claims. The New Yorker reports that Trump and his family have pocketed an estimated $3.4 billion thanks to his two terms as president. Its tally includes profits from cryptocurrencies, the president's MAGA-branded merchandise and his Mar-a-Lago estate. The outlet estimated that, thanks to Trump's two presidencies, the family has made $2.37 billion from cryptocurrency; $339.6 million from financial ventures; $270.8 million from hospitality; $116 million from media; and $277.7 million across other sources, including his private jet, legal fees and merchandise. In response to this report, White House Press Secretary Karoline Leavitt told The Independent: ' The claims that this President has profited from his time in office are absolutely absurd — in comparison to what he could have made if he didn't have to deal with the fake news and corrupt political opponents, the President has lost hundreds of millions of dollars to serve this country.' 'The American people love him precisely because he is a successful businessman, not in spite of it,' Leavitt added. 'The Trump Family is highly respected for always conducting their dealings by the book, unlike past presidents, such as the Biden Crime Family. President Trump has always practiced integrity and transparency, which is why he is and has been forthcoming in sharing his financial disclosures.' Much of the Trump family's estimated earnings have come from various cryptocurrency ventures, The New Yorker reports. This includes an estimated $385 million in profit from the coins $TRUMP and $MELANIA, which he launched just before Trump took office in January, according to the outlet. The Independent has reached out to the Trump Organization and Trump Media for comment. While the president has embraced cryptocurrency, so have his allies. About one in five of Trump's high-level cabinet picks hold significant assets in cryptocurrency, according to a July analysis by The Washington Post. At the time, White House spokesperson Harrison Fields said these figures reflected the success Trump's picks had in the private sector and insisted there were no conflicts of interest. In addition to his cryptocurrency ventures, The New Yorker estimates Trump has made an estimated $27.7 million from his Trump Store merchandise. The outlet noted that Trump is the first Presidential candidate to run a private online store, which competes with his campaign to sell MAGA merchandise. The New Yorker's total included an estimated $1.3 million from Trump's 'God Bless the USA' Bibles and $2.8 million from Trump-branded watches. These figures were previously reported in Trump's 2024 financial disclosure report, which was released in June. Trump reported more than $600 million in income on the form, according to Reuters. The New Yorker estimates Trump's presidencies have also generated an extra $125 million in profit from his Mar-a-Lago estate in Florida. This estimated extra profit came, in part, from Trump's own campaign events at the club, as well as events held by other GOP candidates, organizations and high-profile figures, the outlet reports. In its estimate, The New Yorker also included an estimated $100 million from supporters' contributions that Trump reportedly used to pay for legal fees. While a political campaign fund can't be used for a candidate's personal legal battles, a loophole allowed him to convert campaign funds into political action committees, which are subject to looser restrictions, the outlet claimed. This cash funded his defense across several cases, including Trump's historic hush money trial last year, according to the report. In that case, a Manhattan jury found Trump guilty of 34 counts of falsifying business records to cover up a payoff to adult film star Stormy Daniels during his 2016 campaign. Trump has denied any wrongdoing and is appealing the conviction.

Demand for power set to surge in the next 18 months. Here's what it could mean for your bill
Demand for power set to surge in the next 18 months. Here's what it could mean for your bill

The Independent

time15 minutes ago

  • The Independent

Demand for power set to surge in the next 18 months. Here's what it could mean for your bill

U.S. consumers may see their energy bills continue to rise, following a surge in demand for power over the next 18 months. According to a new report from the Energy Information Administration, the demand is largely fueled by data centers – some of which power online use of AI. The EIA's Short-Term Energy Outlook, released Tuesday, forecasts an increase in U.S. annual electricity consumption in both 2025 and 2026, which will surpass the all-time high reached in 2024. 'We expect electricity sales to the commercial sector to rise by 3.0 percent in 2025 and 4.5 percent in 2026, driven largely by more demand from data centers,' the EIA forecast states. Electricity sales to industrial consumers, meanwhile, will rise by 2.0 percent in 2025 and 3.5 percent in 2026. The surges are likely to mean continuing increases in electricity bills across the country. The EIA analysis predicted that retail electricity prices for households will increase by 4 percent in 2025 when compared to 2024. However, the report also notes that this is not unusual, as prices have increased by about 5 percent on average each year since the pandemic. According to previous reports by the EIA, U.S. consumers spent an average of about $1,760 on electricity expenditures in 2023, with an increase of around 13 percent possible by 2026. At the time, the EIA noted that forecasts for retail electricity price increases differ across the country, with residential electricity prices in the Pacific, Middle Atlantic, and New England census divisions—regions where consumers already pay much more per kilowatt-hour for electricity— would likely increase more than the national average. By comparison, residential electricity prices in areas with relatively low electricity prices may not increase as much, the administration said. The figures are in contrast to previous energy use, which, according to the administration, was 'essentially flat for nearly two decades.'

Aussie sports star shocks as she flaunts her peachy bottom in very skimpy bikini during yacht party in Ibiza
Aussie sports star shocks as she flaunts her peachy bottom in very skimpy bikini during yacht party in Ibiza

Daily Mail​

time16 minutes ago

  • Daily Mail​

Aussie sports star shocks as she flaunts her peachy bottom in very skimpy bikini during yacht party in Ibiza

Australian basketball star Liz Cambage left little to the imagination as she partied on a yacht in Ibiza on Tuesday. The 33-year-old shared an Instagram post during her trip including one video which saw her flaunting her peachy bottom in very skimpy bikini. In the video, Liz twerked towards the camera before turning around and shaking her hips from side to side. The basketball star flaunted her figure and pert derrière in a skimpy black bikini top and matching G-string bottoms. 'Unsure how 3 days in Ibiza turned in to 2 weeks but I'm not mad at it. Thank you @xtratheparty for having me on the island, and all my friends who make it the best time ever always,' she wrote. 'I'm back next week for my birthday and wild corner take over @hiibizaofficial for @domdolla !!!!!!' A four-time All-Star, Liz ended her basketball career in 2022 after mutually parting ways with the Sparks. She signed a one-year deal for $170,000 in February of that year before exploring other opportunities. The Australian center joined Maccabi Bnod Ashdod in Israel and her current team, SiChuan Yuanada. Additionally, she turned to OnlyFans, where her financial success went beyond her WNBA wages. Liz reportedly earned more in her first week on the platform than she did in all her years on the basketball court. According to the sports star, joining OnlyFans was not just a financial move but a way to express another side of herself. Her success on OnlyFans reignited conversations around the pay disparities in professional sports, particularly between the WNBA and NBA. Although she earned $221,450 in her highest-paying season, the gap in pay remains glaringly concerning. Liz now earns $1.5 million annually through OnlyFans as she continues to build her personal brand. She recently said that she is 'not closing any doors, but right now, I'm focusing on building something new.' In addition to her time with the Sparks, Liz was drafted by the Tulsa Shock in 2011 and also played for the Dallas Wings and Las Vegas Aces. She was the WNBA scoring leader and made the All-WNBA First Team in 2018. She also represented Australia and won a silver medal in the 2018 FIBA World Cup and a bronze medal in the 2012 London Olympics.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store