European Stocks Advance as Trump’s Trade Tariff Deadline Looms
European stocks edged higher on signs that the region was getting closer to striking a trade agreement with the US.
The Stoxx Europe 600 Index was up 0.2% by 8:15 a.m. in London. The utilities sector was leading the gains, while media and auto shares were among the biggest laggards. The European Union is willing to accept a 10% universal tariff on many of the bloc’s exports, however wants the US to commit to lower rates on key sectors, Bloomberg News has reported.
In individual stocks, Renault SA dropped 1.4% as the carmaker said it would recognize an estimated €9.5 billion ($11.2 billion) non-cash loss after changing the way it accounts for its stake in ailing Japanese carmaker Nissan Motor Co.
“The market’s attention is once again focused on tariff negotiations,” said Guillermo Hernandez Sampere, head of trading at asset manager MPPM. “The US dollar will likely remain weaker this summer until further indications about future interest rate policy emerge.”
European shares wrapped up the first half of the year with solid gains as the main regional index gained 6.6% this year, narrowly missing out on its best six-month performance in two years. The road is likely to be bumpier ahead, with analysts already downgrading profit expectations for the region.
In other individual movers, Standard Chartered Plc fell 1.4% as the lender is facing a $2.7 billion lawsuit from liquidators alleging it played a role in enabling the laundering of billions of dollars misappropriated from Malaysia’s troubled sovereign wealth fund 1MDB.
Source: Bloomberg
