European equity markets saw modest gains on Wednesday, as investors remained cautious while assessing the impact of U.S. President Donald Trump’s evolving trade tariff policies.
By 07:05 GMT, Germany’s DAX had risen by 0.4%, France’s CAC 40 climbed 0.4%, and the U.K.’s FTSE 100 increased by 0.3%.
Trade Discussions Take Center Stage
This week, market participants in Europe have been closely monitoring developments coming out of Washington regarding ongoing trade negotiations. President Trump extended the deadline for finalizing trade agreements from July 9 to August 1 via an executive order, granting negotiators an additional three weeks to reach a deal.
Despite this extension, Trump indicated there would be “no more extensions” beyond August 1. However, he also described the deadline as “firm, but not 100% firm,” leaving some uncertainty lingering.
Further adding to market jitters, the U.S. president unveiled a 50% tariff on copper imports and hinted at upcoming tariffs targeting other specific sectors. He also threatened pharmaceutical exports with duties as high as 200%, though he plans to delay their implementation by approximately one to one and a half years.
Amid these developments, investors are awaiting potential progress on a U.S.-EU trade agreement, although skepticism remains, especially as Trump mentioned preparing a new tariff notification.
ECB Officials and Fed Minutes in Focus
With limited significant European economic releases scheduled for Wednesday, attention will likely turn to speeches from European Central Bank officials Luis de Guindos and Philip Lane.
Meanwhile, data from China showed a slight improvement in consumer prices for June, surpassing expectations but still remaining relatively subdued. Producer prices, however, contracted for the 33rd month in a row and recorded their lowest level since July 2023.
Later in the day, the U.S. Federal Reserve is set to publish the minutes from its most recent policy meeting. Investors are eager for clues about the central bank’s outlook on interest rates for the remainder of the year.
Renault Poised to Appoint Interim CEO
On the corporate front, no major earnings reports are scheduled for Wednesday, but Renault (EU:RNO) is attracting attention after reports that the French automaker plans to name an interim CEO next week. This follows the impending departure of Luca de Meo, who will move on to lead luxury group Kering (EU:KER).
According to the Financial Times, Renault’s shortlist includes internal candidates Denis Le Vot and François Provost, alongside former Stellantis (NYSE:STLA) executive Maxime Picat.
Oil Prices Dip After U.S. Inventory Surge
Crude oil prices eased from recent two-week highs Wednesday, as data revealed a sharp rise in U.S. crude stockpiles, raising concerns that trade tariffs might suppress demand for oil.
At 03:05 ET, Brent crude futures fell 0.1% to $70.10 per barrel, while West Texas Intermediate futures also dropped 0.1%, settling at $68.28 per barrel.
Prices had surged to two-week peaks on Tuesday, driven by worries over supply disruptions after renewed attacks by Houthi forces on Red Sea shipping routes.
The American Petroleum Institute reported an unexpected build of 7.1 million barrels in U.S. crude inventories for the week ending July 4, far surpassing the anticipated drawdown of 2.8 million barrels.
Market participants are now awaiting confirmation from the Energy Information Administration’s official inventory report later in the day, especially as the Independence Day holiday weekend typically fuels strong travel demand.
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