Europe: Shares rise on tech, banks boost with focus on US trade negotiations
The pan-European Stoxx 600 index ended 0.44 per cent higher at 543.50, gaining some ground after clocking a weekly loss on Friday.
Most regional indexes rose, with Germany's DAX up 1.2 per cent, France's CAC 40 adding 0.4 per cent and Spain's IBEX gaining 0.7 per cent.
UK's FTSE 100 lagged as shares of Shell dropped 2.9 per cent after the energy major said it expects quarterly earnings to be hit by weaker trading in its integrated gas division and losses at its chemicals and products operations.
Global risk sentiment remained shaky as US Treasury Secretary Scott Bessent said the United States will make several trade announcements in the next 48 hours.
The European Union still aims to reach a trade deal by July 9 after Commission President Ursula von der Leyen and Trump had a 'good exchange', a Commission spokesperson said.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
'Trade deals have taken years to agree ... it will be surprising if they get proper long-lasting deals signed very quickly,' Andrew Lapping, chief investment officer at Ranmore Fund Management, said.
Trump said on Sunday the US was close to finalising several trade pacts and would notify other countries by July 9 of higher tariff rates. He said they would not take effect until August 1, a three-week reprieve.
On Monday, technology stocks were among the biggest boost on the Stoxx, with Germany's SAP and Dutch semiconductor equipment makers ASML climbing around 2 per cent each.
A gauge of euro zone lenders gained 1.6 per cent, with France's Societe Generale jumping 2.8 per cent, hitting its highest level since 2017 earlier in the day.
Capgemini fell 5.6 per cent after the French IT services firm agreed to buy technology outsourcing company WNS for a cash payment of US$3.3 billion.
European shares had a strong start to the year, with the Stoxx 600 hitting an all-time high back in March as a jump in defence companies, along with a global move away from US assets, lifted appetite.
But the benchmark has fallen more than 3 per cent from those levels, while a tech boost in the United States helped the S&P 500 claw back its losses.
On the data front, a survey showed investor sentiment in the euro zone improved more than expected in July to hit its highest level in more than three years.
Later this week, June inflation readings out of Germany and France, and a GDP reading in the UK will be on the radar.
Minutes from the US Federal Reserve's last policy meeting are also due on Wednesday. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
AsiaOne
an hour ago
- AsiaOne
EU population hits record 450 million on another migration boost, World News
Migration into the European Union pushed its population to a record 450.4 million people last year, offsetting a natural population decline for the fourth straight year, EU data released on Friday (July 11) showed. Why it matters Since 2012, the EU has recorded more deaths than births annually, making migration the sole driver of population growth. The trend highlights Europe's demographic challenge as an aging population and low fertility rates strain welfare systems and create labour shortages. By the numbers The bloc added 1.07 million inhabitants in 2024, with positive net migration of 2.3 million people compensating for a natural population decline of 1.3 million as deaths (4.82 million) continued to outweigh births (3.56 million). Germany, France and Italy remain the bloc's most populous countries, accounting for almost half of the total EU population with 47 per cent. While 19 EU countries recorded population increases in 2024, eight saw declines. Malta recorded the highest growth rate at 19.0 per 1,000 people, followed by Ireland (16.3) and Luxembourg (14.7). Among countries with declining populations, Latvia was the steepest (-9.9), followed by Hungary (-4.7), Poland and Estonia (both -3.4). The bloc's population has grown from 354.5 million in 1960, though growth rates have slowed significantly from 3 million annually in the 1960s to 0.9 million during 2005-2024. Key quotes "The observed population growth can be largely attributed to the increased migratory movements post-Covid-19," EU statistics arm Eurostat said. Context Population in the 27 member states had declined during the Covid-19 pandemic. [[nid:638542]] Some European governments have also tightened border controls amid public concerns over migration even as irregular border crossings dropped 38 per cent in 2024 to their lowest level since 2021. Belgium, Poland, Germany and the Netherlands have all introduced temporary border checks over the past year and a half, straining the EU's passport-free Schengen zone. The EU also rolled out a revamped migration system last year aimed at reducing irregular arrivals and speeding up asylum procedures.
Business Times
an hour ago
- Business Times
US dollar has best week since February on tariff inflation risks
[NEW YORK] The US dollar turned in its best weekly performance in more than four months as US President Donald Trump's latest tariff threats heightened concern that escalating trade tensions will stoke inflation and derail a rally in risk markets. The Bloomberg Dollar Spot Index rose 0.7 per cent this week, the best showing – by a hair – since the week of Feb 28, after falling for two weeks before that. The yen and pound sterling were among the worst performers in the Group of 10 this week. Traders had grown increasingly bearish on the greenback in the last several months as concerns over deficits and fiscal spending curbed the appeal of the US currency. Now, as Trump unveils new tariff plans following a three-month pause – including a 35 per cent levy on some Canadian imports and blanket tariffs of up to 20 per cent on most trading partners – investors are focusing on the potential risks from the fallout, including inflation. 'The market setup is too sanguine on trade policy risks with short dollar and long risk positions,' said Aroop Chatterjee, a strategist at Wells Fargo. He also said that the market shows 'too much optimism that the Fed will be rising to the rescue with inflation uncertainty working against that narrative'. JPMorgan strategists led by Meera Chandan said they see that some indicators have turned less bearish on the dollar, 'which could signal consolidation in the near term, but we consider these less relevant over the medium term'. They expect the greenback to weaken further based on tariffs and policy uncertainty, while they are bullish on the euro, yen and Swiss franc. Meanwhile, speculative traders slightly increased their bearish dollar views according to the latest data, while remaining close to the most negative on the greenback since August 2023. A group of non-commercial traders, including asset managers and other speculators, raised their bets against the dollar in the week through Jul 8, according to the Commodity Futures Trading Commission's report. They now hold some US$18.6 billion worth of positions tied to the dollar weakening, up from about US$18.3 billion in a week prior. BLOOMBERG
Straits Times
3 hours ago
- Straits Times
Chelsea out to stop PSG completing clean sweep in Club World Cup final
Sign up now: Get ST's newsletters delivered to your inbox EAST RUTHERFORD – Chelsea must somehow try to stop an irresistible Paris Saint-Germain side from adding the Club World Cup trophy to their Uefa Champions League title, as the final of the first edition of Fifa's expanded competition takes place on July 13. PSG travelled to the United States fresh from becoming European champions with a stunning 5-0 demolition of Inter Milan in Munich in late May, and they have lived up to their favourites tag at the Club World Cup. Luis Enrique's side put four goals past Atletico Madrid in the group stage, four more past Lionel Messi's Inter Miami in the last 16, and then proved too strong for Bayern Munich in the quarter-finals. They appeared to hit new heights as they tore apart Kylian Mbappe's Real Madrid in the last four, when their 4-0 winning margin could have been far greater. The Parisians now stand on the verge of an extraordinary achievement, as they look to complete a clean sweep of trophies in this 2024-25 season and add the world title to their French and European crowns. But Enrique refused to accept that PSG are necessarily overwhelming favourites to lift the trophy at the 82,500-capacity MetLife Stadium. 'This is absolutely not going to be a simple formality,' the Spanish coach insisted. Top stories Swipe. Select. Stay informed. Asia Air India crash report shows pilot confusion over engine switch movement Business F&B operators face tougher business landscape amid rising costs and stiff competition Business What's in store for policyholders after GE removes pre-authorisation letters for two private hospitals Multimedia Which floor is this? Chongqing's maze-like environment powers its rise as a megacity Life At 79, she can do 100 pull-ups: Why more seniors are hitting the gym Asia 'Woven air': Ancient fabric spun across history makes comeback amid lies and climate change World US man who decapitated father and displayed head on YouTube gets life in prison Business 4 conditions that allow seniors with dementia to sign wills 'I have analysed Chelsea. They have a great squad. Enzo Maresca is doing a great job and I really like what he is doing. They are a very complete team.' Desire Doue, one of their standout performers during a remarkable campaign, also said there were no concerns about complacency. 'We are not over-confident, not at all,' the France international told reporters on Friday. 'We have been favourites for most matches in this competition and throughout this season, but what matters is what we do on the pitch (on Sunday).' Chelsea have plenty of reason to believe they can win too, with the game finally wrapping up a campaign in which they won the Uefa Conference League and also finished fourth in the Premier League to qualify for the Champions League. While PSG lost to Botafogo during the group stage, the Blues were also beaten by Brazilian opposition in Flamengo. However, they have gone on to defeat Benfica as well as two other Brazilian teams, Palmeiras and Fluminense, to reach the final. 'For sure they (PSG) are a top team in Europe and probably in this moment the best team in the world,' manager Maresca told reporters. 'But I think every game can be different. We have maximum respect for them. I really enjoy watching them but at the same time we are here to do our best and try to win the final.' PSG's record against English opposition in 2025 shows the size of task facing Chelsea – the French club faced four Premier League teams in the Champions League and beat them all, from Manchester City and Liverpool, to Aston Villa and then Arsenal. 'It is a super high-level game. They are one of the hottest teams in the world at the moment but this is the final, a one-off game,' added Chelsea captain Reece James. 'Everyone has them down as strong favourites but I have been in many finals before where we have been favourites and we have not come out on top. I don't really care that everyone is bigging up the opposition. We are just preparing in the right way and we are going out to win.' The match brings down the curtain on a month-long competition that Fifa is already hailing as a huge success. But concerns over the heat of an American summer have plagued the tournament, with Chelsea's Enzo Fernandez saying that playing in the middle of the afternoon was 'very dangerous' – Sunday's game will kick off at 3pm local time. Whatever happens in the final, the tournament has already been a huge success for the participants from a financial viewpoint. Chelsea and PSG are assured to go home with over US$100 million in prize money, with the definitive amount to become clear after the final – that money will be particularly welcome for Chelsea after they were recently fined by Uefa for breaching financial rules. AFP, REUTERS
