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European stock markets inched higher on Wednesday as investors weighed prospects for global trade agreements alongside expectations for further monetary easing by central banks.

By 07:02 GMT, Germany’s DAX index advanced 0.3%, France’s CAC 40 increased 0.6%, and the U.K.’s FTSE 100 gained 0.4%.

Trade optimism fuels markets

U.S. President Donald Trump reiterated on Tuesday that the July 9 deadline for finalizing trade deals will not be extended. If no agreements are reached by then, the affected countries will receive formal notifications detailing the tariffs they will face.

Despite this firm stance, market sentiment has been lifted by anticipation that several trade accords will be concluded before the deadline, especially following last week’s announcement of a trade deal between the U.S. and China.

The European Commission, representing the EU in negotiations, is expected to present a set of demands during talks with the Trump administration this week.

Last week, European Commission President Ursula von der Leyen expressed confidence that a deal could be secured ahead of the July 9 cutoff.

Eurozone unemployment figures in focus

The eurozone’s unemployment rate for May is due later in the trading session. However, this data is unlikely to significantly impact the European Central Bank’s forthcoming monetary policy decisions.

Over the past year, the ECB has cut interest rates by two percentage points from record highs. Inflation reached the bank’s 2% target last month, signaling a stabilization after a period of elevated price increases.

Market participants generally forecast one more ECB rate reduction to 1.75% before year-end, followed by a phase of steady rates, with potential hikes anticipated toward late 2026.

In contrast, U.S. monetary policy appears more uncertain after Federal Reserve Chair Jerome Powell’s recent comments. Powell indicated that rate cuts would likely have occurred sooner if not for the tariffs imposed by the Trump administration, who has frequently criticized the Fed’s approach.

Corporate news highlights

In corporate developments, Spectris (LSE:SXS) has accepted an improved takeover proposal from U.S. private equity firm KKR, outbidding Advent’s offer for the scientific instruments manufacturer. This deal may become the largest acquisition of a British company this year.

Meanwhile, Swiss engineering firm ABB (TG:ABJ) announced the launch of three new lines of factory robots designed specifically for the Chinese market, aiming to capitalize on growing automation demand among mid-sized enterprises.

Oil prices steady amid geopolitical and inventory updates

Crude oil prices remained largely unchanged Wednesday as traders absorbed news of progress toward an Israel-Hamas ceasefire and rising U.S. crude inventories ahead of the next OPEC+ meeting.

At 03:02 ET, Brent crude futures dipped 0.1% to $67.04 per barrel, while U.S. West Texas Intermediate (WTI) futures fell 0.2% to $65.34 per barrel.

President Trump said Tuesday evening that Israel had agreed to terms for a 60-day ceasefire with Hamas, urging the Palestinian group to accept the accord.

Data from the American Petroleum Institute released Tuesday showed U.S. oil stockpiles increased by 680,000 barrels for the week ending June 27. This build followed five consecutive weeks of significant declines in inventories, raising questions about fuel demand during the busy summer travel period.

Gold prices remained steady during Wednesday’s Asian trading session, maintaining gains achieved over the last two days. The precious metal found support amid growing concerns about the U.S. fiscal deficit following the Senate’s approval of President Donald Trump’s expansive tax and spending package.

Uncertainty surrounding upcoming U.S. trade negotiations, especially with the July 9 tariff deadline approaching, also contributed to gold’s appeal as a safe-haven asset.

Spot gold hovered around $3,337.25 per ounce, while August gold futures slipped slightly by 0.1% to $3,347.40 per ounce as of 01:52 ET (05:52 GMT).

This week, gold prices have surged over 2%, recovering losses from last week when news of a ceasefire between Israel and Iran reduced demand for safe-haven investments.

Senate Approves Trump’s Tax and Spending Bill, Raising Debt Concerns

The Republican-controlled Senate narrowly passed a sweeping tax and spending bill on Tuesday. The legislation, which aims to cut taxes, reduce social welfare programs, and increase funding for defense and immigration enforcement, is expected to add approximately $3.3 trillion to the national debt.

The bill now heads to the House of Representatives for final consideration, with the goal of having it signed into law by President Trump before the July 4 Independence Day holiday.

Meanwhile, Federal Reserve Chair Jerome Powell reiterated on Tuesday that the central bank will closely monitor the effects of tariffs before deciding on any interest rate cuts, pushing back against Trump’s calls for aggressive easing.

Investors interpreted Powell’s remarks as mildly dovish since he did not dismiss the possibility of a rate cut as soon as next month.

Market attention now turns to Thursday’s U.S. nonfarm payrolls report, which will be crucial in assessing the likelihood of a rate reduction in July, although a cut in September is largely anticipated.

Trade Tensions and Tariff Deadline Add to Market Caution

Concerns about the U.S. fiscal deficit combined with expectations of lower interest rates have buoyed gold prices. The upcoming July 9 deadline for tariff decisions has further injected uncertainty, supporting demand for precious metals.

President Trump has indicated he does not plan to extend the tariff deadline and will inform countries about the specific tariffs they will face through official notifications.

He also mentioned that India might ease restrictions on U.S. companies, potentially paving the way for a trade agreement, though he expressed skepticism about reaching a deal with Japan.

Metal Markets Show Mixed Activity Amid Dollar Weakness

The U.S. Dollar Index remained weak during Asian trading, lingering near its lowest point since February 2022.

Despite this, metals markets showed muted activity as investors awaited clarity on trade negotiations and tariff developments.

Silver futures held steady at about $36.05 per ounce, while platinum futures edged up 0.2% to $1,369.05.

Copper prices were more active, with London Metal Exchange copper futures climbing 0.4% to $9,968.65 per ton, and U.S. copper futures rising 1.6% to $5.1165 per pound.

Shares of Spectris (LSE:SXS) jumped more than 4% on Wednesday following the announcement that U.S. private equity firm KKR has agreed to acquire the precision measurement company in a cash transaction valued at £4.7 billion.

KKR will complete the acquisition through its subsidiary, Project Aurora Bidco Limited, using a court-approved scheme of arrangement under Part 26 of the Companies Act 2006.

Under the terms of the deal, Spectris shareholders are set to receive £40.00 per share. This amount consists of £39.72 in cash paid by Bidco, along with an interim dividend of 28 pence, which is subject to approval during the 2025 dividend cycle.

This offer represents a substantial premium — approximately 96.3% — over Spectris’ undisturbed closing price of £20.38 recorded on June 6. It also surpasses a rival bid from Advent, which valued shares at £37.63, by about 6.3%.

The Spectris board has unanimously endorsed the KKR proposal, withdrawing its previous support for Advent’s competing offer. The board highlighted KKR’s higher valuation, greater deal certainty, and commitment to maintaining the company’s current operations and workforce as key factors in its decision.

Furthermore, the board emphasized that the all-cash offer presents shareholders with an attractive exit at a premium, especially amidst ongoing market volatility.

For the fiscal year ending December 31, 2024, Spectris reported revenues of £1.2 billion and an adjusted operating profit of £203 million. The company operates primarily through its Scientific and Dynamics business units, supplying industries including pharmaceuticals, semiconductors, aerospace, and automotive.

As of June 6, Spectris had a market capitalization of roughly £2.1 billion.

The transaction is anticipated to be completed by the first quarter of 2026, contingent on shareholder approval, court sanctioning, and regulatory clearances across the UK, EU, US, and China. Upon completion, Spectris will be delisted from the London Stock Exchange and transition to a privately held company.

The U.S. dollar saw a slight uptick on Wednesday but remained close to its lowest levels in several years, as investors weighed dovish signals from Federal Reserve Chair Jerome Powell alongside the recent approval of President Donald Trump’s expansive fiscal package in the Senate.

As of 04:15 ET (08:15 GMT), the Dollar Index — which measures the greenback against a basket of six major currencies — inched up 0.1% to 95.512, just above its lowest point since February 2022.

Fiscal Bill and Fed Independence Under Scrutiny

The Senate, controlled by Republicans, narrowly passed a sweeping tax and spending bill overnight, with Vice President JD Vance casting the deciding vote. This legislation, projected to add roughly $3.3 trillion to the national debt, now returns to the House of Representatives for further deliberation before it can be signed into law.

Adding to the dollar’s pressure has been President Trump’s ongoing public criticism of Powell, shining a spotlight on the Federal Reserve’s independence.

At a recent central banking forum in Sintra, Portugal, Powell maintained a cautious stance, emphasizing a data-driven approach to monetary policy that will keep the dollar highly reactive to upcoming employment and inflation reports. Analysts at ING noted that Powell “did not dismiss the possibility of a rate cut in July,” suggesting that a disappointing jobs report could prompt markets to price in easing as early as this month.

Ahead of the official U.S. jobs figures due Thursday, market participants are also watching the ADP National Employment Report scheduled for release later Wednesday, which economists forecast will show private payrolls rising to 99,000 in June, an increase from 37,000 in May.

Recent data highlighted a mixed labor market, with job openings unexpectedly rising in May but hiring activity showing signs of slowing, hinting at a potential cooling of an otherwise resilient employment sector.

Euro Strength and Central Bank Outlook

In Europe, the euro edged down 0.2% against the dollar to 1.1778, just below its strongest level since September 2021. The euro has posted its best first-half performance ever, according to London Stock Exchange Group data.

European Central Bank President Christine Lagarde attributed the euro’s gains not only to market trends but also to the underlying strength of the eurozone economy. Speaking at the ECB’s Central Banking Conference, she stated, “It reflects both the market’s assessment and the robustness of our economy.”

After implementing its eighth rate cut within a year last month, the ECB indicated it is likely to hold steady at its next meeting while evaluating incoming economic data. ING analysts remarked, “The ECB shifted to a more hawkish tone in June and appears willing to wait before adjusting policy further.”

The EUR/USD exchange rate remains largely influenced by the dollar’s trajectory, with markets eager to buy on dips, as evidenced by a quick rebound following stronger U.S. economic data. ING also suggested that a move toward 1.20 could occur if the U.S. payrolls report disappoints significantly.

Sterling and Political Uncertainty

The British pound slipped 0.3% to 1.3709, retreating from Tuesday’s peak near 1.3787 — a level not seen since October 2021. Sterling’s weakness reflects ongoing political challenges faced by the Labour government, which recently made major concessions to secure passage of its welfare legislation in Parliament.

According to ING, “The UK government abandoned a planned £5 billion cut to benefits after a revolt by Labour backbenchers. This development raises questions about the stability of PM Starmer’s leadership and increases the likelihood of tax hikes this autumn.”

Asian Currencies and Trade Talks

In Asian markets, the dollar gained 0.3% against the Japanese yen to 143.83 as focus remained on trade negotiations between Washington and Tokyo, which President Trump recently described as tenuous.

Meanwhile, the USD/CNY pair rose slightly to 7.1672, with the Chinese yuan weakening marginally as the dollar steadied near three-year lows.

Oil prices showed little movement during Asian trading on Wednesday after U.S. President Donald Trump indicated progress toward an Israel-Hamas ceasefire, while signs of an unexpected build in U.S. oil inventories dampened market confidence.

Attention was firmly focused on an upcoming meeting of the Organization of Petroleum Exporting Countries and its allies (OPEC+), where the cartel is widely expected to approve an increase in oil production. This meeting is scheduled for July 6.

Brent crude futures for September delivery remained steady at $67.09 a barrel, while West Texas Intermediate (WTI) crude futures dipped slightly by 0.1% to $64.06 a barrel as of 21:00 ET (01:00 GMT).

Brent futures recovered some losses after falling to a three-week low on Tuesday. These declines erased gains made during recent tensions involving the Israel-Iran conflict, following the announcement of a U.S.-brokered ceasefire between the two countries.

Oil prices were also unsettled by growing uncertainty over U.S. trade tariffs ahead of a July 9 deadline. On Tuesday, President Trump stated that he did not see a need to extend this deadline.

Trump reported that Israel had agreed to the terms required to finalize a 60-day ceasefire with Hamas, while urging the Palestinian group to accept the deal. According to Trump, his administration held a “long and productive meeting” with Israel, and the proposed 60-day ceasefire would serve as a period to negotiate a permanent truce.

This potential ceasefire points toward a further de-escalation of geopolitical tensions in the Middle East, especially following the recent ceasefire between Israel and Iran, which appears to be holding.

Such developments suggest a reduced risk of supply disruptions from the region, which generally acts as a bearish signal for oil markets.

In the United States, oil inventories unexpectedly increased. Data from the American Petroleum Institute (API) showed a build of 0.68 million barrels in the week ending June 27, contrary to expectations of a 2.26 million barrel drawdown.

This API figure follows five consecutive weeks of significant and larger-than-expected declines in U.S. oil stockpiles, raising questions about the strength of fuel demand during the busy summer travel season.

The API data typically precedes similar government inventory reports, which were due to be released later on Wednesday.

Overall, markets are grappling with doubts about strong U.S. fuel demand amid ongoing uncertainty around President Trump’s trade policies, persistent inflationary pressures, and weakening consumer sentiment.

Conroy Gold and Natural Resources PLC (LSE:CGNR) has discovered a new mineralised outcrop, named McCully’s Outcrop, at its Corcaskea gold target in Ireland. This outcrop exhibits an East-West orientation with a North dip, differing structurally from the nearby Clontibret resource area. The finding suggests a distinct mineralisation direction, potentially expanding the prospectivity of the Corcaskea target as an extension of the Clontibret gold resource.

This new geological insight could significantly influence future drilling strategies and enhance the company’s efforts to grow its resource base. The discovery strengthens Conroy Gold’s understanding of the area’s geology and may lead to increased resource estimates, benefiting shareholders and guiding ongoing exploration.

About Conroy Gold and Natural Resources

Conroy Gold and Natural Resources PLC focuses on gold exploration and development in Ireland, centered on the ‘Discs of Gold’ project. This project covers two district-scale gold trends spanning approximately 90 kilometers and is anchored by the Clontibret deposit, which contains a defined resource of 517,000 ounces of gold. The company holds licenses covering multiple gold targets, with geological features comparable to major gold deposits in Southeastern Australia and Atlantic Canada.

Greggs plc (LSE:GRG) announced a 6.9% increase in total sales for the first half of 2025, reaching £1,027 million. However, like-for-like sales grew more modestly by 2.6%, affected in part by unusually high temperatures in June that altered consumer buying habits. The company expanded its footprint with 87 new shop openings, resulting in a net increase of 31 locations, and targets 140 to 150 net openings by the end of the year.

The Board expects full-year operating profit to be slightly lower than 2024’s results, citing the strong prior-year performance and ongoing efforts to manage cost pressures.

Greggs maintains robust financial health, demonstrating solid profitability and operational efficiency. Recent corporate developments, including CEO share purchases and positive outcomes at the AGM, have bolstered investor confidence. While technical indicators show some bearish signals, the company’s attractive valuation, supported by a reasonable P/E ratio and consistent dividend yield, offers appeal to shareholders.

About Greggs plc

Greggs plc is a leading UK food retailer specializing in bakery products, known for its wide range of freshly prepared sandwiches, savory snacks, and baked goods. The company operates a substantial network of company-owned and franchised stores across the UK.

Avacta Group PLC (LSE:AVCT) has shared its Q2 2025 business update, outlining key strides in its strategic initiatives, with a particular focus on advancing its clinical-stage pre|CISION® platform. The company is progressing its FAP-Dox (AVA6000) program through Phase 1b trials, demonstrating encouraging results in treating salivary gland cancers, with pivotal data anticipated in late 2025 and into 2026. Alongside clinical development, Avacta is reinforcing its leadership team by appointing new board members and a Chief Medical Officer to drive its commercial partnership goals.

The company is actively engaging with external partners to identify and pursue new commercial opportunities. Additionally, Avacta has brought on Zeus Capital as a joint broker to boost investor relations and market visibility.

While clinical advancements and strategic partnerships provide positive momentum, Avacta continues to face financial pressures and operational challenges that have affected market performance. The need for further funding remains a critical factor impacting its overall outlook.

About Avacta Group plc

Avacta Therapeutics is a clinical-stage biotechnology firm dedicated to developing targeted cancer therapies using its proprietary pre|CISION® platform. This innovative technology utilizes tumor-specific proteases to selectively activate potent treatments within the tumor environment, reducing harm to healthy cells. The company’s pipeline features peptide drug conjugates (PDC) and Affimer® drug conjugates (AffDC), which offer potential benefits over conventional antibody drug conjugates.

Bytes Technology Group plc (LSE:BYIT) has reported that early-year trading has been impacted by a tough macroeconomic climate, causing some customers—especially in the corporate sector—to delay purchasing decisions. In response, the company has reorganized its corporate sales operations into specialized teams focused on distinct customer segments. Although this transition requires a longer ramp-up, it is expected to foster sustainable growth during the second half of the financial year.

The company noted that changes to Microsoft’s enterprise incentives have had a stronger effect in the first half, but anticipates a return to normalized growth in gross and operating profits as the year progresses. Continued investment in sales teams aims to support this recovery, with an updated full-year outlook planned for release in October.

Bytes Technology Group benefits from strong financial results and positive corporate developments. Despite technical indicators hinting at potential overbought conditions, solid growth and insider confidence create a compelling investment proposition.

About Bytes Technology Group plc

Bytes Technology Group plc is a prominent UK and Ireland-based IT software solutions provider, specializing in AI, cloud computing, and cybersecurity products. The company focuses on facilitating efficient technology sourcing, adoption, and management for a broad range of business clients. BTG is publicly traded on the London Stock Exchange and the Johannesburg Stock Exchange.

Topps Tiles Plc (LSE:TPT) posted a strong performance in the third quarter of 2025, with group adjusted sales rising by 10.1%, outpacing the growth seen in the year’s first half. Sales gains were recorded across all divisions, with notable strength in trade sales, alongside an uptick in active trade customers and online revenue. Despite a challenging cost backdrop, the company anticipates improved gross margins and expects operating costs to increase at a slower pace than gross profits.

Strategically, Topps Tiles continues to progress its Mission 365 plan, emphasizing digital innovation and expansion of its business-to-business sales channel, laying a foundation for sustained growth in both sales and profitability.

While the company faces financial pressures such as elevated leverage and falling profitability, recent corporate developments and strategic efforts offer promise for a turnaround. Technical signals and valuation suggest a cautiously neutral to slightly negative market stance.

About Topps Tiles

Topps Tiles Plc stands as the UK’s largest specialist tile supplier, serving domestic, commercial, and housebuilding sectors. The company reaches customers through 297 stores nationwide, a commercial showroom in London, and various online platforms, catering to homeowners, trade professionals, contractors, architects, and designers.